As a trader, of course you need to understand the order types in forex. In forex trading, an order is an order to buy or sell a currency pair, or currency pair.

In addition, we can also choose when our orders will be processed, whether now or later. There are several types of orders provided by the best forex broker, each of which has its own benefits.

There are two types of orders to enter and exit the forex market, namely open orders and close orders. An open order is an order to open a position to buy and sell, and enter the market to start trading.

Meanwhile, a close order is an order to close a buy and sell position, and to exit the market to complete a transaction.

Both order types in forex (open and close orders) can be executed in two ways, namely manually and automatically. An automatic order to open a position is called a pending order, and to close a position is called a stop loss and take profit.

Manual and Automatic Order Types in Forex

In forex trading, manual orders are called Order Now. If you believe the current price is the best price for the transaction, you can place this Order Now to open and close orders according to real-time market prices.

But remember, the liquidity of the forex market is very, very high, so it is possible that the price you get will be slightly different from the price you see when placing the order. Automatic orders to open orders are called Pending Orders.

This pending order can be used according to the trading strategy you are currently running, so that you can enter and exit the market and look for profit opportunities without having to look at the chart for 24 hours. Pending Orders are further divided into several types:

1. Pending Buy and Pending Sell to look for profit opportunities around the support and resistance points

Support and resistance are known as one of the fields of profit in forex. Support is the point where the price that continues to fall (bearish) changes towards an upward direction. Now, if you are eyeing profit opportunities around this support point, you can use Pending Buy.

With this order types in forex, you can set a price level below the current price. The hope is that the price drops until it reaches that level, your buy order is executed, then there is support and the direction of the price changes up so that you get profit.

Conversely, you can use Pending Sell when you are eyeing profit opportunities around the resistance point. Resistance is the opposite of support, where product prices that continue to rise (bullish) change direction to decline.

With Pending Sell, you can choose a price level that is higher than the current price. So that you will get a profit if the price rises to touch that level, your sell order is executed, then resistance occurs and the price direction changes down.

2. Stop Loss and Take Profit to protect capital funds and profits

Both Stop Loss and Take Profit serve to close your position on the market. If the price movement is not profitable, Stop Loss will automatically close the position at the loss level that you have set so that the losses you experience tend to be small.

Meanwhile, if the price movement is profitable, Take Profit will automatically close your position at the profit level you have specified. This is to protect profits in the event of an unexpected price change before you have had time to realize a profit.

Transactions in forex always take place in both directions, so brokers provide a choice of order types to help traders transact. Only make transactions through trusted brokers such as Didimax forex broker.

You can take advantage of these order types in forex according to your trading needs and analysis, so you don't need to keep looking at charts without taking a break.