7. Types of Orders

types of orders

 

eToro Index is one of the world largest broker company. Owing it to the experience that the company has acquired with years of work, eToro is able to offer its clients a broad spectrum of quality services to manage their position 24 hours a day. This ensures that the clients do not miss any trading opportunity. Here are some of the services offered.

 

Entry Orders: orders to open positions

 

Using this feature, you can have the opportunity of opening new position in the future when the price will have reached a specific level that you had predetermined. This helps you to buy or sell at your desired price. With this feature, you will easily spot a trading opportunity in the current or future market levels. This makes it possible for you to maximize your trading potential. There are two types of Entry orders

Entry orders: two types

 

Stop Orders

eToro index forex trading platform enables you to place stop orders that you can use when you believe that the price will continue in a specific direction after a certain interval. This is ideal when you are both selling or buying. For instance the sell orders would be below the current price while for buy orders this would be foe levels that are above the current price.

A very good example is an instance where let say the USD/CHF is currently trading at 0.8030/0.8033. if you think that if USD/CHF goes up to 0.8060. there is more probability of it rising further, you can enter a Buy position when the price hit the resistance level rather than trading at the current price which is likely to change.

To gain profit you can lace an Entry Stop Order to purchase $10,000 on USD/CHF the moment the price hits 0.8060. Doing so will mean that that when the USD?CHF “ask” price reaches 0.8060 the order will be executed by the system. This means that the trading system will automatically enter you into this new Buy position on $10,000 on USD/CHF.

Limit order

The Limit order is a type of entry order that you can use when you think that the price will reverse after reaching a certain point. If you are a buyer, this point will be below the current price. For the buyer the point will be above the current price. Let’s take an instance where the AUD/USD is trading at 1.0937 / 1.0939.

If you think that if AUD/USD reaches 1.0965, the AUD value will fall against the value of the USD, you can enter a sell price. When the sell price reaches the point, you had indicated rather than trading at the current price. For instance, you can place a Limit Entry order to sell AUD 20,000 on AUD/USD the moment the price hits 1.0965. This means that hen the bid of AUD/USD reaches 1.0965 the order will be triggered. This will result to a new sell trade of AUD20,000 on AUD/USD being opened automatically.

The OCO Orders

The OCO is the abbreviation of “One Cancels the Other”. It refers to two separate orders that are linked to one another on the same market. If you have two orders liked to one another, the first order to be triggered is automatically entered into a live position, while the other is deleted. You can use the OCO Order when you have a feeling that one of the two scenario may arise in a certain currency pair. For example, we can take the GBP/USD pair, which are trading at 1.0937 / 1.0939. In this scenario a trader may feel that a rise over 1.6100 means more gains and a fall below 1.6000 indicate further losses. The trader can place an OCO order for a sell stop order at 1.5990 or a buy stop order at 1.6110.

When the GBP/USD forex pair goes below the 1.6000 level, it will trigger the sell stop order at 1.5990. The eToro system will automatically fill the Stop Order and create a new position whilst cancelling the Stop Order at 1.6110 automatically.

 

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