Currency Trading Systems: Using Market Orders Right

Currency trading systems require an understanding of what market orders are and
how to use them effectively. The following short tutorial is intended to
help you in the proper use of market order implementation.

Market Order: is used to buy or sell a selected currency pair at the current
market price. A market order is completed at the price displayed once the
Currency trader pushes the order button.

Stop Order: a stop order is normally executed in a Currency trading system when
the market meets or exceeds the stop price. Once originated, the order is
held until the stop price is reached. Using stop orders you can close out a
position (stop loss), reverse a position, or open a new position. Stop
orders can also be used to protect an open position by setting a limit on
losses or preserving unrealized gains.

Once the market meets or exceeds the stop price, the order is activated and
executed at the next available price. A stop order does not guarantee the
stop rate. Market conditions like volatility and low volume at the stop
price level may trigger a stop order at a cost less desirable than the stop
price.

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