Forex Trading Forex Trading Orders and Execution

Question 1

What is a 'market order' in Forex trading?

Accepted Answer

An instruction to execute a trade immediately at the current market price

Answer

An order to buy or sell at a specified future price

Answer

An order that expires at the end of the trading day

Answer

An order placed to hedge an existing position

Question 2

What is a 'limit order' in Forex?

Accepted Answer

An order to buy or sell at a specific price or better

Answer

An order that limits the trader's daily loss

Answer

An order placed automatically by the broker

Answer

An order that caps leverage at a set level

Question 3

What is a 'stop-loss order' designed to do?

Accepted Answer

Automatically close a losing trade at a pre-set price to limit losses

Answer

Lock in profits at a target level

Answer

Prevent a trade from opening above a certain price

Answer

Notify the trader when the market is trending

Question 4

What is a 'take-profit order'?

Accepted Answer

An order that closes a trade automatically when a profit target is reached

Answer

An order to add to a winning position

Answer

An order to convert profits into a different currency

Answer

An order placed after a loss to recover funds

Question 5

What is a 'trailing stop' order?

Accepted Answer

A stop-loss that moves with the market price to protect profits

Answer

A stop placed behind a support level

Answer

An order that follows another trader's position

Answer

A stop-loss set at a fixed dollar amount

Question 6

What does 'Good Till Cancelled' (GTC) mean for a Forex order?

Accepted Answer

The order remains active until it is either filled or manually cancelled

Answer

The order expires at the end of the trading day

Answer

The order is guaranteed to execute at the set price

Answer

The order is only valid during the New York session