Now, moving on, let's talk about the different types of forex orders right. So in this section it's all about you know, learning the different types of forex orders, and one thing to point out is that uh there are many more different types of orders that you can use, especially when you're using professional trading platforms, but the ones that i'm About to share with you right now is, i would say, the ones that you are likely to use right most of the time. Okay, so let's get started first, one market order. Second, one is the limit order.

Third, one is a stop order and, finally, a stop loss order. So let me explain each one of them step by step. First, one is a market order, so let's say it's a buy market order order because it could also be a sell market or the concept is the same, but in this case let's go with, let's, let's say a buy market order. This is in essence, right.

You're, trying to you know, buy at the current market price right now, no matter what so this is like you know, sending an order to your brokerage platform and say hey. I want to enter euro usd right now, no matter what now, so your broker will fill you at a trade at the current prevailing price. So the pros to it is that you know you're guaranteed to enter a trade. There is no what if, but or whatsoever, you're guaranteed to enter a trade, but the downside to this is you might get slippage right during fast moving markets and you might be thinking right now.

What is slippage man? So here's the thing right in the forex market. Yes, it's liquid most of the time, but when it when there's a big piece of news coming up like let's say you know, nfp, non-farm, payrolls or fomc meetings. Right, let's say: euro usd is currently trading at one three: zero: zero, zero right, but during fast moving markets you, if you hit market order right, you could get slippage right where you thought: hey, i'm gon na buy a 1.3, but you end up. You know buying actually one three zero.

Let's say two zero. You had end up paying 20 pips more than expected, so this is kind of like the downside to using market order because of this uh slippages. So, instead of you know buying at one point three: zero: zero, zero. You end up buying at one point: three: zero, two: zero, a slippage of 20 pips, so in other words you're paying 20 pips more than you expected.

Okay. So this is a market order. The other type of market order right is limit order. So again, let's talk about buy, limit order, sell limit order is just the opposite, so for a buy limit order right, it's an order, an order to buy below the current market price.

So let me give you an example. So let's say market is in a range between these highs and this lows it goes up, comes down, goes up, and now it's in the middle and you think to yourself. Ah man, price right now is in the middle right. I want to buy, i want to be a cheap skate, i want to buy the best price and it seems like the best price is near this lows over here, and let's say this: is euro usd.

This lows is around five 1.5. So what you can do is you can place a buy limit order at one point: five: zero: zero, zero! So such that, if the market comes down into this level, you will get filled on that buy trade. But of course, if the market doesn't come down, you won't get fuel, so that is kind of like the the pros and cons to using a buy limit order. So let me give you a chart.

Example you can so you can see what i mean. So this is uh, for example, pound canadian, let's say you're looking at this chart, maybe on the eight hour time frame, okay and you zoom out a little bit - and you realize oh this - this market right, this seems like a good place to buy. This is an area of support. Don't worry if you're not familiar with this technical term, i'll explain more in the later section, but let's say hey: you want to buy around 172 right.

This looks like a good place to buy because the market has bounced once twice. You know, and three times over here this looks like a good place to buy, but the current market price is at this point over here, which is almost near 1735. So what can you do? You can place a buy limit order over here, a buy limit at 1.72, so this means only if the market comes down low enough into this 1.72 level. Only then will you get filled.

If not, you won't be in this trade. So this is what a buy limit order means. So, of course, all right. The good thing about it is that you get to buy at the price you want.

The downside is, you might not get filled on the trade, so maybe you're waiting for that level, but the market doesn't come to the level and instead you know if it continues. You know going up higher then clearly right, you wouldn't, you know, be in the trade. So vice versa, right for a cell limit order, the concept is just the opposite, so moving on the third type of order is a stop order. So again, let's talk about buy stock order, so this in essence, right is to in order to buy only if the market moves above a specific price level.

So you might be thinking what does that mean? So again, i can give you an example. Let's say, market is uh, let's say it's trending higher, it goes up, pulls back, goes up, pulls back and it's starting to go up, and you tell yourself hmm, i'm looking at this chart and it would make sense right that i want to buy only if the Price can breaks above this highs, because, if you can breaks above this highs, then there's a good chance that this market could continue higher. So you want to tell yourself i will only buy if the price can breaks above this high if it doesn't break above this high. I will not, you know, enter a trade, so what you can do is to use a buy, stop order.

So an example is this one here, if you look at this chart dollar against the chinese yuan, this is the eight hour time frame. So again, you can look at this and say hmm at this point right right now. I have no idea where the price might go up and come back down. You know and again i don't want to enter right now, because you know this could happen and then you're thinking to yourself.

I feel more confident if the price can break above this highs. Only then i would be willing to buy. So, if that's your thought process, what you can do is you can use a buy, stop order. You can place a buy, stop order at this price around six dollars and 59 cents around this price point which is somewhere about here.

So you can place a buy stock order here. Let's call it bs buy, stop not not not bs that you're familiar with, but buy stop order at 6.59, so such that if the price goes up and breaks above 6.59, this is an order that will automatically you know, get you into this trade right because it Broke it broke about broke above this key level, 659 that you have, you know put into your broker platform, so it's an order to buy if the price moves above a specific price level. So this is useful right with your trading breakouts. This order is, you know, absolutely useful, because in breakout trading the price will break out of a specific level and then you'll continue with the momentum right to hit higher.

So if you have a buy, stop order, you are, you know, kind of, like assured, to enter right if the price could break out of a level. The downside to this is that it might be a false breakout. So again, what could happen is that let's say pound a dollar against the chinese yen, so this is the highest price, would go up, break out and then boom reverse right. This is possible as well, anything can happen in the market, so this is a one possibility that could happen right.

If you are, you know, using buy, stop order to enter a trade, so the next type of order right will be uh, stop loss order. So the first three orders that i shared with you right. Those are orders right to get you into a trade so for stop. Loss order is the opposite, because this is an order to get you out of a trade.

So so, let's say we are going with a long entry, okay, so a stop loss order is in order to sell your position if the price exits a specific level. So, for example, let's say you market this in a range up down up down and start to go up. Okay - and this is the area of support and you start to buy over here. Okay, and what happens is that you know, as you know, in trading, nothing is certain, there's a possibility that this market could continue to reverse down lower and lower, and if you don't bail out of your trade in time right, you could, you know, lose a lot Of money, so this is where you can use a stop-loss order and say you know, hey, you can tell your broker hey, you know what, if the market, you know breaks below this level in rate? Okay, if the market reaches this level in rate, i want to get out of that trade.

So, to tell that you will tell your broker to set a stop loss order at this particular price. Let's say this price is at two dollars right and you will exit your trade, so this is what we mean by a stop loss order. It's an order to sell your position if the market moves against you and reaches a specific price level. So a chart example would help.

So let's say you look at dollar against usd against the singapore dollars, so you can look at this right. Market right now looks a little bit bullish right, this area of support and it's starting to hit higher. But, of course, as you know, market could possibly you know, reverse down and break lower. So to protect your downside, what you can do is to set a stop-loss order.

Okay, so this is the area of support and what i would say a proper stop-loss order could possibly be at 1 33 6 level around here. So this means i can tell a broker and say: hey. You know i. I am long usd against the singapore dollars, but i know the trade could go against me, so i'm going to set a stop loss order at 1.336.

So if the market, let's say, reverse down lower and hit my stop loss level, which is this one over here - the stop loss level. I will want to sell the position that i have to protect my downside, so i can leave to fight another day. So this is how a stop-loss order works. It's to protect your downside, okay and, of course, right.

The downside to using a stop-loss order is that you might get stopped out of your trade prematurely. So what could happen also? Is that okay, let's say you set your stop loss at this level here, there's no, there is, you know nothing to stop the market from coming down lower when you hit your stop-loss and then reverse up higher. That could also happen. So this is kind of like the downside downside to using a stop-loss order, but as a forex trader as a trader who uses leverage in your trading, i still suggest you use a stop loss order.

Sometimes yes, this could happen it sucks, but in the grand scheme of things right, you will likely right have a longevity in your trading career, because your losses are always kept small and that's achieved by using proper risk management and position sizing and again those are things That you have learned earlier and we'll revisit them later with chart examples, but for now i just want you to be familiar with a stop-loss order. Okay and the opposite for stop-loss order right is, can be used for both the long trade and a short trade. The concept is the same: just you know the inverse. So let's say, for example, you are in a short trade.

Let's say: market comes up into this area of resistance and you sell right. You can put your stop-loss order above this high. So if the market breaks out higher, you would exit this trade if the market hits your stop loss at this particular price point, so just the inverse right of a long entry. So let's do a quick recap right of the four market orders.

You have just learned number one market order gets you into a trade immediately, no matter what a limit order gets you into a trade only if it comes to a specific price level that you have dictated a stop order gets you into a trade if the market Exceeds a certain price level, for example, let's say buying breakout only if let's say breaks above, let's say a hundred dollars, will you be entering the breakout trade? So that's what a stop order, a buy, stop order can do for you and finally, a stop-loss order. Right would get you out of a trade if the market, you know uh exit a certain price levels to protect your downside. You.