Order types 

Entry orders: Orders to open positions 

You can use entry orders as an instruction to open a new position when a market price reaches a specific level chosen by you. Once this level is met, the order will execute a buy or sell, depending on your chosen direction (and subject to you having adequate funds to cover margin requirements). 

There are two types of exit orders: 

Stop orders 

Stop orders can be used when you believe the price will continue in the same direction after a certain point. For buy orders, this would be for order levels above the current price whilst sell orders would be below the current price.  

For example, let's say that USD/CHF is currently trading at 0.92055, with bid and ask prices of 0.92045/0.92065.  

You believe that if USD/CHF goes up to 0.92060, then it is likely to rise further. Therefore, you want to enter a Buy position when the price hits this resistance level rather than trade at the current price.    

You place an Entry Stop Order to buy $10,000 on USD/CHF when the price reaches 0.92060. This means that when the USD/CHF 'ask' price reaches 0.92070, the order will be executed. You will be automatically entered into a new buy position of $10,000 on USD/CHF. 

Limit orders 

You can use an entry limit order when you believe that the price will reverse after a certain point. For buy orders, this would be below the current price whilst sell orders would be above the current price. 

For example, let's say the AUD/USD is currently trading at 0.72488, with bid and ask prices of 0.72477/0.72399.  

You believe that if AUD/USD reaches 0.72495, the Australian dollar will fall in value against the US dollar. Therefore, you want to enter a sell position when the price hits this level rather than trade at the current price.  

You place a limit entry order to sell AUD10,000 on AUD/USD when the price reaches 0.72495. Therefore, when the ‘bid’ of AUD/USD hits 1.0984, the order will be triggered. A new sell trade of AUD10,000 on AUD/USD will be opened automatically.