When your broker tells you that they are going to execute an order, they are telling you that they are either going to buy currency or sell currency on your behalf. In Forex trading, there are many types of orders that you can use to direct your broker’s actions. The following are the most frequently used orders in the Forex market:

• Stop loss orders. Stop loss orders are used when there is potential for loss in a trade. It is used to lessen the amount of loss that a trader suffers. For example, you are expecting a specific currency rate to rise. You place an order for your broker to buy it before the price goes up. It drops instead of rising. If you place a stop loss order, your broker sells the currency for the price you specify before your losses are too large.
• Order cancels order. Also known as an OCO, this means that if you were to place two market orders for a currency, with one above the current price and one below the current price, whichever one of the two is activated first automatically cancels out the other. For example, if you placed two market orders for a current currency price and it drops first, that order will activate first, causing the market order at the higher price to be cancelled.
• Limit orders. Limit orders are orders to buy or sell a currency when it reaches a certain price amount. Instead of having to wait for a currency to reach a rate that you know it will eventually get to, a limit order will instruct your broker to purchase that currency automatically. If the expected price of a currency drops instead of rising, this order gets canceled.
• Market orders. These orders are the easiest orders in the trading market. A market order simply instructs your broker to buy or sell currency at the current prices. By simply choosing your currency pairs and the number of lots you want, your broker knows what to sell or buy.

Learning the differences in trading orders is important. It is the main aspect of trading in the Forex market. In the beginning, your broker may be able to help you understand what you want to do. In the long run, however, brokers are not mind readers. If you do not learn the trading orders, you may wind up losing more money than gaining profits.

There is a wide variety of information available about learning the Forex trade market basics. There are more trading orders that can be used. In order to have an effective grasp on the market and how it runs, you need to familiarize yourself with all the orders and what they mean. Your success may very well depend on it.