February 18, 2014

Placing Orders with Australian Forex Brokers

Australian Forex Brokers and Market Orders

This article looks at the orders you need to know how to place with Australian forex brokers.

It is important that you know how to place orders with Australian forex brokers.  If you do not know about the orders that you should place and the way that you can place these orders then you will not be able to trade successfully.  There are three orders that you have to be able to place with the Australian forex brokers.  You should know what these are and the different ways that they help your trading.  You should also consider the ways that you can place them when you trade on the platform provided by the Australian forex brokers.

The Market Order and Australian Forex Brokers

The first order that you have to be able to place with the Australian forex brokers is the market order.  This is the most commonly used order and the simplest to place.  This order will open the trade at the market value at the time of order execution.  This means that you are guaranteed to have the trade filled, but you are not guaranteed a price.  The price you get with the market order is subject to the slippage that you have with the broker.

As the market order is the easiest and simplest to open you should be able to find it easily on the trading platform.  Generally, the trading platform will have a buy and sell button on the main interface.  This is what you are going to use to place the market order.

The Stop Loss Order

The second order that you need to know how to place is the stop loss order.  This order will limit the losses that you are going to make when you trade.  You need to have this order in place with every trade that you create.  There are some brokers that do not allow you to open a trade unless there is a stop order.  The stop order that the automatically place is not the one that you should use because it is a margin call order.  This means that when the price is reached you will have a margin call on your trading account.

When you open up a market order you will generally be able to place the stop loss order at the same time.  You need to set the order at the price that you are comfortable with.  It is important that you know what price you are going to set the stop loss at before you open you trade.

The Take Profit Order

The last order that you have to know how to use is the take profit order.  The take profit order will be placed at a price where you are happy to close your trade and take the profit that you have made.  There are some trading platforms that insist that you have a take profit order with all your trades.  If you are using one of these platforms then you are going to be able to place this order when you open the market order.

However, if you are not using one of these platforms then you will need to find where you can place this.  This could be part of the additional trade options on the trading platform.



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