Types of Orders: Stop Orders
A pending order becomes a market order when a specific price level is achieved and broken. A stop order is placed below the current market value of that currency for Short (Sell) positions and above for Long (Buy) positions. When the price reaches the level of Sell Stop or Buy Stop, the position will be opened automatically at the current market price similar with Market Order execution. The price when Stop Sell or Buy Order is executed may not always be the price you set up. This may be especially true in fast-moving markets where currency prices are more volatile.
To a pending order Stop Loss and Take Profit orders can be attached.
Example 1
Current Market price: Bid - 1.24460, Ask - 1.24490.
Order Price Level: 1.24523 must be above Ask of Current Market price. When the price reaches Order Price Level, the position will be opened automatically at the current market price similar with Market Order execution.
Stop Loss: 1.24512 must be below of Order Price Level. When the price reaches level of Stop Loss, the position will be closed automatically at the current market price similar with Market Order execution.
Take Profit: 1.24531 must be above of Order Price Level. When the price reaches level of Take Profit, the position will be closed automatically at the Take Profit Level or better similar with Limit Order execution.
Example 2
Current Market price: Bid - 1.24420, Ask - 1.24485.
Order Price Level: 1.24409 must be below Bid of Current Market price. When the price reaches Order Price Level, the position will be opened automatically at the current market price similar with Market Order execution.
Stop Loss: 1.24450 must be above of Order Price Level. When the price reaches level of Stop Loss, the position will be closed automatically at the current market price similar with Market Order execution.
Take Profit: 1.24395 must be below of Order Price Level. When the price reaches level of Take Profit, the position will be closed automatically at the Take Profit Level or better similar with Limit Order execution.
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