Buying and Selling

Order Basics :

• Sellers are asking for a high price.
• Buyers are Bidding at a lower price.
• Trading is an auction.
• Slippage occurs with most Market Orders.
• The diffrence between the ASK and the BID price is the spread.

A trader must understand what each order is, what it and what part it plays in capturing profit.

A FOREX Trader must use three types of orders: a Market Order, a Limit Order, and a Stop Order.

The two primary orders used for entering and exciting the market are a Limit Orders, and a Stop Orders. Once an order is placed your order to enter the market, there are two critical procedures: One-Cancels-the-Other( OCO ) and Cancel-and-Replace. Properly exectuing orders and understanding these procedures are a vital step to profitables trading.

IMP : all good carpenters carry a toolbox. The sharper the tools and the more skilled he is at using them, the more effective he is. The sharper you become as a trader the more effcient and lucrative you will be.

What orders do : A clear understanding of what each order does is essential before exectuing orders.