Order types

You’ve decided to buy EUR/USD. The order ticket offers market, limit and stop orders, plus a stop loss. Each does something different.

Now, or at a price you choose

Market orderBuy limitBuy stopSell limitSell stopStop lossTake profit

Fills immediately at the current ask (buying) or bid (selling). You get speed; you accept whatever the price is right now.

Current price is 1.0850. Tap an order type to see where it sits and when it fills.

A market order fills immediately at the current ask (if buying) or bid (if selling). It is the simplest order and the one most beginners use for everything.

A pending order waits for the price to reach a level you set. There are two kinds, and the difference is which side of the current price they sit on:

• A limit order waits for a better price: buy below the market, or sell above it. “I’ll buy if it dips to 1.0825.”
• A stop order waits for confirmation: buy above the market, or sell below it. “I’ll buy only if it breaks out above 1.0875.”

The two orders that protect you

Once a trade is open, two more orders manage it:

• A stop loss closes the trade automatically at a set loss. It caps your loss even when you are not watching.
• A take profit closes the trade automatically at a set gain.

Both can be attached when you open the trade, and most platforms let you set them in the same ticket.

Notice in the chart above how buy limit and sell stop both sit below the price, and buy stop and sell limit both sit above it. The side depends on whether you want a better price or a confirmed move.

Quick check

1. Question 1 of 3

   EUR/USD is at 1.0850. You want to buy, but only if it first dips to 1.0830. Which order?

   ABuy limit at 1.0830BBuy stop at 1.0830CMarket order

Go deeper: Stop losses: where to place them, and why it matters · Forex Order Types Explained: Market, Limit and Stop