“Trading Orders

 > Explanatory Article by Marios Kyriakou, MSc Economics


About the author: Marios Kyriakou has a bachelor’s degree in Economics from the University of Cyprus and a master’s degree in Economics from the University of Warwick. He is also a holder of CySEC’s Advanced Certificate in Financial Services Legal Framework and a professional in Online Trading, Forex and CFDs with more than 7 years of experience.

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<Last updated 14.04.2020>

Dear reader,

Hi! If you are interested in online trading please read carefully the below where I explain the main orders a trader can perform and the position that he/she holds in the market.

Speculators will carefully take into consideration fundamental and technical analysis in order for them to take the appropriate position in the market.

 

Long Position

> A position that involves buying now with the intention to sell later at a higher price. Buying low and selling higher is the profit generating strategy since ever.

To be able to go long you must send an order that involves buying the product offered by the broker. Such orders can be for example:

Market order: Buy at the market price.

Pending Order: Buy Limit Order, Buy Stop order.

 

 

Short Position

> A position that involves selling now with the intention to buy later at a higher price. Selling higher / buying lower is the profit generating strategy since ever.

To be able to go short you must send an order that involves buying the product offered by the broker. Such orders can be for example:

Market order: Buy at the market price.

Pending Order: Buy Limit Order, Buy Stop order.

 

The Stop Loss

> Stop Loss is an order to exit a position for a predefined loss;  also known as an “order to Limit Losses”.

Is getting stopped ok?

Yes, it’s a cost of doing business!

Las Vegas loses money each day, it’s a key part of their profitable strategy.

Due order: Stop Loss

The Take Profit

> Take Profit is an order to exit a position for a predefined gain. Traders establish profit targets to avoid letting emotion take over a trade.

Measures the reward of the trade.  Permits both small and large gains based on market conditions and plan for the trade.

Due order: Take Profit

More about the Types of Trading Orders?

a) Market orders: A market order is an order to buy or sell at the best available market price.

Please keep in mind that depending on market conditions, there may be a difference between the price you selected.

b) Buy Limit and Sell

A limit entry is an order placed to either buy below the market or sell above the market at a certain price.

c) Sell Stop, Buy Stop (pending orders):

A stop entry order is an order placed to buy above the market or sell below the market at a certain price.

d) Stop Loss and Take Profit (due orders)

A stop loss order is a type of order linked to a trade for the purpose of preventing additional losses if the price goes against you.

 

Trailing Stop

A trailing stop is a type of stop loss order attached to a trade that moves as the price fluctuates.

Once the market price hits your trailing stop price, a market order to close your position at the best available price will be sent and your position will be closed.

 

Other orders and abbreviations:

Good ‘Till Cancelled (GTC)

Good for the Day (GFD)

One-Cancels-the-Other (OCO)

One-Triggers-the-Other


 

“I hope I am clear on this one. If not, contact us on social media and we will do our best to help you.

Thank you for reading my articles and watching my videos.”

Marios Kyriakou

Disclaimer: This article is intended for educational purposes only and does not replace independent professional judgement. Its purpose is to act as a complementary educational service to society, promoting personal development and social, economic and cultural progress of citizens. While this content has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the creator to the accuracy or completeness of the information presented or any other written or oral information made available to any interested party and any such liability is expressly disclaimed.
Risk Warning: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products involves substantial risk of loss as there is considerable exposure to risk in any off-exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of the markets that you are trading. You should carefully consider your investment objectives, level of experience and risk appetite before making a decision to trade with us. Most importantly, do not invest money you cannot afford to lose. It is possible to lose all the initial capital invested.

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