As you may well know there are three different types of orders that a Forex trader can place. The first one is a market order. Simply described, it’s one where you agree to purchase a currency at the “ask” rate or you’re willing to sell it at the dealer’s “bid” rate. So let’s say you’re interested in buying the EUR/USD. The going rate as quoted by your brokerage firm is .9253/59. This means that the brokerage firm you’re dealing with would purchase the EUR/USD from you at .9253 and would sell it to you at .9259.
In order to open such a position all you have to do is access the Forex trading platform; you’d then click on the rate, and select “market order;” and don’t forget to place the number of lots, using proper money management. And note, for a new order press on “initiate.” Take a look at market session activity to know whether slippage is a possibility. Remember that this happens during very volatile times. However, using volatility to your advantage can prove to be profitable.
Placing a stop order is another possibility. It means that you’re only willing to enter into the market if a currency reaches your desired target price. So if you forecast that the EUR/USD will increase to $1.3210 but it only reaches $1.3205, your order won’t be placed.
Contrary to it is the limit order which lets you open a position if you’re set to purchase below the current rate.