Forex Order Types: Market, Limit and Stop Orders Explained

There are six order types, split into two groups: those that execute immediately and those that wait for a price.

Market entry

You take the current price. Fast, but exposed to slippage — around news the actual fill can be several pips away.

Pending orders

Stop Limit combines the two: hitting the stop price places a limit order. It controls your worst fill but may not fill at all.

Three mistakes that cost money

Ignoring the spread. A Buy Limit triggers on the Ask. Place it exactly at a candle low with a 1.5-pip spread and price must travel 1.5 pips deeper. Those pips are often exactly what is missing.

No expiry. A pending order placed for a specific setup executes three days later in a completely different market. Set an expiration.

Obvious stops. Round numbers and the extremes of the last candle are where liquidity sits. Place the stop slightly beyond and cut size so risk stays the same.

Read next

• Where to place a stop-loss
• Take-profit and risk/reward
• Trailing stops