Master Forex Trading Commands – The Key to Profitable Gains

Want to succeed in the foreign exchange market, the first thing every trader needs to do is understand how to use trading orders. Choosing the right type of order and the timing to place it can determine the entire outcome of a trade. This article will help you explore in detail the different types of forex orders and how to apply them most effectively.

What Is a Forex Trading Order?

In the Forex market, an order is a tool that traders use to express their intention to buy or sell a currency pair. Each type of order has its own features and operates differently. To become a professional trader, you must master each type of order, know how to select appropriate entry points, and choose the right timing. Only then will you have the opportunity to increase profit potential and minimize risks.

Two Basic Types of Orders: Market Orders and Pending Orders

Market Order – Execute Immediately

Concept

A market order is an order that a trader executes immediately when they see a suitable price on the screen. When you decide to place an order, it will be matched at the current market price without waiting further.

Order Matching Mechanism

When using market orders in forex trading, you will receive:

• Buy orders will match at the Ask price (liquidity provider’s selling price)
• Sell orders will match at the Bid price (liquidity provider’s buying price)

For example, if the EUR/USD pair currently has a Bid of 1.32211 and an Ask of 1.32366:

• If you buy, the order will be executed at 1.32366
• If you sell, the order will be executed at 1.32211

When to Use

Market orders are suitable for scalping traders or short-term trading because they are executed immediately and without delay.

Pending Orders – Pre-Set at a Specific Price

Pending orders allow you to buy or sell at a predetermined price, which you have calculated in advance, instead of waiting for the actual price to rise or fall. This is very useful when you do not want to monitor the screen constantly.

Limit Orders – Limit Order

Limit orders come in two forms:

Sell Limit (Pending Sell Order)

• You place an order to sell at a higher price than the current market price
• The order will automatically execute when the price reaches your specified level
• Example: EUR/USD is at 1.2432. You predict the price will rise to 1.25 then fall. You place a Sell limit at 1.25 to sell high. When the price reaches 1.25, the order will automatically execute.

Buy Limit (Pending Buy Order)

• You place an order to buy at a lower price than the current market price
• The order will automatically execute when the price drops to your specified level
• Example: EUR/USD is at 1.2432, you think the price will go down to 1.23 then rise again. Place a Buy limit at 1.23. When the price drops to 1.23, the order will automatically execute.

Both types reflect the “buy low, sell high” strategy and are favored by professional traders.

Stop Orders – Stop Entry Order

A stop order is triggered when the price reaches a predetermined level you set earlier. There are two main types:

Buy Stop (Buy Stop Order)

• You place an order to buy at a higher price than the current price
• When the price starts rising and hits your specified level, the order is automatically activated
• Suitable when you believe the price will continue to rise after breaking through a resistance level

Sell Stop (Sell Stop Order)

• You place an order to sell at a lower price than the current price
• When the price drops to your specified level, the order is automatically activated
• Used when you predict the price will continue to decline after breaking a support level

Specific example: EUR/USD is at 1.2323 with an upward trend. You forecast the price will continue up when it hits 1.24. Instead of waiting, you place a Buy stop at 1.24. When the price reaches 1.24, the order will automatically execute without you needing to monitor it.

Risk Management Orders – Financial Protectors

Alongside main forex trading orders, traders need to use additional orders to control profits and losses.

Take Profit – Lock in Profits

This is an additional order attached to a main trade. When the price reaches your desired profit level, the order will automatically close the trade to secure gains.

• If you are in a BUY position, the take profit order is a Sell limit
• If you are in a SELL position, the take profit order is a Buy limit

Example: You buy EUR/USD at 1.2345. You predict the price will rise to 1.24 and want to lock in profits at that level. You set a Take Profit at 1.24. When the price hits 1.24, the order will automatically sell, earning you 1.24 – 1.2345 = 55 pips.

Stop Loss – Cut Loss to Protect Capital

Conversely, Stop Loss is used when a trade does not go as expected. This order closes the trade at a certain loss level to prevent excessive losses.

• If you are in a BUY position, the stop loss order is a Sell stop
• If you are in a SELL position, the stop loss order is a Buy stop

Example: You buy EUR/USD at 1.2345. To limit potential losses, you set a Stop Loss at 1.23. If the price does not rise but starts to fall, when it hits 1.23, the order will automatically sell. Your loss will be 1.2345 – 1.23 = 45 pips.

Experienced traders always use Stop Loss with each trade. This helps protect available capital and allows you to continue participating in the market without the risk of account wipeout.

Trailing Stop – Dynamic Order for Experts

Trailing Stop is a special type of Stop Loss. Instead of fixed at a certain price, it automatically adjusts according to the market price when the trade is in profit, helping to preserve gains while allowing you to continue “seeking additional profits.”

This order type is suitable only for professional traders because it requires:

• Keeping the trading software open (if closed, the order will be canceled)
• Experience to set a reasonable Trailing Stop distance
• Sufficient capital to withstand volatility

Example: You sell USD/JPY at 88.80 and set a Trailing Stop of 20 pips. Initially, the Stop Loss is at 89.00. When the price drops to 88.60, the Stop Loss automatically adjusts down to 88.80 (maintaining the 20 pips distance). If the price continues to fall to 88.40, the Stop Loss adjusts again to 88.60. The trade continues as long as the price does not deviate more than 20 pips from its highest point.

How to Place Forex Orders on Modern Platforms

Regardless of which platform you use, the process for placing basic forex orders is as follows:

Step 1: Select Asset and View Chart

Access your trading platform, search for and select the asset you want to trade (e.g., EUR/USD, Solana, gold). The price chart will display for analysis.

Step 2: Decide to Buy or Sell

Click the Buy (Buy) or Sell (Sell) button. The order window will appear where you can:

• Enter trading volume (e.g., 0.01 lot for a $1000 account)
• Choose order type (market or pending order)
• Set Stop Loss and Take Profit

Step 3: Execute the Order

After filling in all details, click Buy/Sell to place the trade.

Step 4: Manage the Trade

Once the trade is open, you can:

• Monitor real-time price movements
• Adjust Stop Loss or Take Profit if needed
• Manually close the trade at any time by selecting “Close” on that trade

Important Tips When Using Orders

Manage Trading Volume

• Never bet too large. With a $1000 account, start with 0.01 lot to ensure safety.
• Gradually increase trading size as you gain experience.

Always Use Stop Loss

• Choose a Stop Loss level based on the maximum acceptable loss relative to your capital.
• This helps preserve your remaining funds for continued trading.

Combine Take Profit and Stop Loss

• Professional traders always set both orders simultaneously when opening a trade.
• This creates a “safety zone” for each of your trades.

Choose Orders That Fit Your Strategy

• Short-term scalping: use market orders
• Long-term or signal-based trading: use pending orders
• To preserve profits when in profit: use Trailing Stop (if experienced)

Conclusion

Mastering forex trading orders is the first step to becoming a successful trader. From market orders for quick trades, to pending orders for long-term plans, and risk management orders to protect your capital – each type plays a unique role.

Start by understanding each order type clearly, practice on a demo account first, and gradually develop your own trading strategy. With solid knowledge of orders and risk management, you will have a strong foundation to generate sustainable profits from the forex market.