An Entry Order is an order to enter the market at a specified price.Entry orders are divided into two types, Limit Entry and Stop Entry orders. Limit Entry orders are entry orders to enter the market at a more favorable price. When buying a currency pair, the limit entry will be placed below the current market price. When placing an entry order to sell, the limit entry order will be placed above the current market price.
Limit entry orders are often conducive to strategies pertaining to range-bound markets, where clients can place orders to buy at the bottom of the range and sell at the top.
Stop entry orders are conducive to breakout strategies, where the trader believes that if the specified rate is reached, the trend’s movement is confirmed and thus will continue in that direction.
Outside of FX
Technically, limit entry and stop entry orders have extra qualifications attached to their execution. Limit entry orders are to be filled at a specified price or better. Stop entries are to be filled when a particular price is reach – executed at any price the market will bare. This is fairly important to understand in less liquid and efficient markets, such as equities and futures. But in FX the differentiation between stop entry and limit entry are often set aside, since traders can usually rely on their flawless execution at most times.
Good ‘Till Canceled – GTC
Good Till Canceled (GTC) orders are left pending until the trader decides to cancel it, or the order is executed. In FX, most entry orders will be GTC. This requires traders to be vigilant that as entry orders are left