Order Types Explained (Market, Limit, Stop, SL/TP)
This article explains the different order types available on the Capital Street FX trading platform and how traders can use them to execute and manage trades.
Market Orders
A market order is executed immediately at the best available current market price. This order type is used when a trader wants to enter or exit a position without waiting for a specific price level.
Limit Orders
A limit order allows a trader to buy or sell an instrument at a specified price or better.
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Buy Limit: Executes at a price lower than the current market price.
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Sell Limit: Executes at a price higher than the current market price.
Limit orders are used to enter the market at more favorable price levels.
Stop Orders
A stop order becomes a market order when the price reaches a specified trigger level.
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Buy Stop: Used to enter a buy position above the current market price.
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Sell Stop: Used to enter a sell position below the current market price.
Stop orders are commonly used to enter trades when momentum is expected to continue.
Stop Loss (SL)
A Stop Loss order automatically closes a trade when the market reaches a predefined loss level. This helps limit potential losses on a position.
Take Profit (TP)
A Take Profit order automatically closes a trade when a predefined profit level is reached. This helps secure gains without requiring manual intervention.
Using SL and TP Together
Traders can set both Stop Loss and Take Profit levels on a trade to define:
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Maximum acceptable loss
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Desired profit target
These tools support structured risk management strategies.
Important Notes
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Market conditions may result in slippage between the requested and executed price.
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Limit and stop orders may not be filled if market conditions do not reach the specified levels.
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Capital Street FX reserves the right to modify or cancel orders during abnormal market conditions.
This article helps traders understand how to use different order types to execute and manage trades effectively.