As a new Forex trader, one of the most important things you’ll need to learn is how to place the right type of order. Think of orders as instructions you give to your trading platform — telling it exactly what to do with your trade.
In this guide, we’ll go over the basic order types every beginner should know — explained simply and clearly.
🛒 What Is an Order?
An order is a command you give to your broker to buy or sell a currency pair. The type of order you choose depends on whether you want to enter the market immediately or wait for the price to reach a specific level.
✅ 1. Market Order (Instant Execution)
This is the most straightforward order — you buy or sell a currency at the current market price.
Example:
You want to buy EUR/USD right now. You place a market order, and your trade is opened instantly.
✔ Best for: When you want to enter a trade immediately
⏳ 2. Pending Orders (Wait Until Price Reaches Your Target)
Pending orders are used when you don’t want to enter right away — but only when the market hits a specific price.
There are 4 common types of pending orders:
🔼 Buy Stop
You expect the price to go up, but only want to buy after it breaks above a certain level.
Use when: You’re waiting for a breakout above resistance.
🔽 Sell Stop
You expect the price to go down, but only want to sell after it drops below a certain level.
Use when: You’re waiting for a breakdown below support.
🔽 Buy Limit
You want to buy at a lower price than the current market.
Use when: You expect the price to dip before going back up.
🔼 Sell Limit
You want to sell at a higher price than the current market.
Use when: You expect the price to rise before falling again.
🛑 3. Stop Loss (SL)
A stop loss automatically closes your trade at a loss if the market goes against you.
Why it matters: It protects your capital by limiting how much you can lose on one trade.
✔ Always use a stop loss. It’s a key part of good risk management.
🎯 4. Take Profit (TP)
A take profit automatically closes your trade in profit once the market hits your target.
Why it matters: It locks in your gains without needing you to be online.
📌 Final Tip from a Pro
As a new trader, focus on mastering these basic order types. Don’t try to trade everything — just learn how to use:
Market Orders for fast entries
Stop Losses to protect your funds
Take Profits to secure your wins
Pending Orders to plan your trades in advance
The more you plan your trades, the more confident and consistent you’ll become.