When trading forex, it is important to use stop loss, take profit and trailing stop orders to protect your profits and limit your losses. A stop loss order is placed at a certain price level below the current market price and will automatically sell your position if the market falls to that level.
A take profit order is placed at a certain price level above the current market price and will automatically sell your position if the market rises to that level.
A trailing stop order is placed at a certain percentage below the current market price and will automatically sell your position if the market falls by that percentage. Using these orders can help you stay in control of your trades and make sure that you are always getting the best possible prices for your positions.
A sell limit is an order to sell a currency pair at a price above the current market price. A buy limit is an order to buy a currency pair at a price below the current market price. A sell stop is an order to sell a currency pair at a price below the current market price and expected move down more. Those are pending order in forex trading market.
A buy stop is an order to buy a currency pair at a price above the current market price and expected move up more. A Buy stop and sell stop is setup as pending order for future further movement on instrument. Pending order is setup for future execution and mitigate risk reward in trading.
