The main order types
| Order | What it does | Use it when |
|---|---|---|
| Market order | Buys or sells now at the best available price | You want in immediately |
| Buy limit / sell limit | Buys below or sells above the current price | You want a better price, for example at support |
| Buy stop / sell stop | Buys above or sells below the current price | You want to join a breakout |
| Stop loss | Closes a losing trade at a set price | Every trade, without exception |
| Take profit | Closes a winning trade at a set price | You have a planned target |
| Trailing stop | A stop loss that follows the price | You want to protect profit in a trend |
Loading the rest of the lesson…
Questions people ask
Why did my stop loss close at a worse price?
During fast markets or gaps the next available price may be beyond your stop. That is slippage, and it is common around big news and weekend gaps.
Read next
- How the market works
How prices are formed, what moves them, who the market participants are, what bid, ask and spread mean, and ho…
- Trading the news
How economic news moves forex, gold and indices, how to use an economic calendar, why spreads widen and slippa…
- Risk and reward
The maths of winning: how much to risk per trade, risk/reward ratio, win rate, expectancy and losing streaks, …
Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.