What are the different types of orders in trading?

Modified on Tue, 27 May at 6:15 AM

In trading, an order is an instruction you give through the trading platform to open or close a position. Understanding how different types of orders work is essential for executing your strategy and managing risk effectively.

At Pivex, all orders are placed through MatchTrader, which allows for easy and fast execution.

Order type	What it does	When to use	Example
Market Order	Executes immediately at the best available market price.	You want to enter or exit a position quickly.	If EUR/USD is at 1.1000 and you place a market buy, your trade is executed right away at the current price (or closest available).
Limit Order	Executes only at a specific price or better.	You want to wait for a better entry or exit price.	You want to buy EUR/USD at 1.0950 (below the current price), so you place a buy limit order. The trade will only be executed if the market reaches 1.0950 or lower.
Stop-Loss Order	Automatically closes your trade at a specific loss level.	You want to protect your account from large losses.	You buy EUR/USD at 1.1000 and set a stop-loss at 1.0950. If the price drops to 1.0950, your trade will close automatically, limiting your loss. Note: At Pivex, using stop-losses is strongly advised for effective risk management.
Take-Profit Order	Automatically closes your trade once a target profit is reached.	You want to secure profits at a specific price.	You buy EUR/USD at 1.1000 and set a take-profit at 1.1100. If the price reaches 1.1100, the platform will close your position automatically with a profit.
Stop-Limit Order	A stop triggers a limit order when a price is reached.	You want to avoid slippage but still automate your trade.	You set a stop at 1.0950 and a limit at 1.0945. If the market hits 1.0950, the platform places a limit order at 1.0945. The trade will only fill at or better than that price.
Trailing Stop	Follows the price as it moves in your favor and locks in profit if the market reverses.	You want to ride the trend while protecting gains.	You set a trailing stop of 50 points. If EUR/USD moves up, the stop-loss follows. If the price drops back by 50 points, the trade closes.

MatchTrader at Pivex

MatchTrader makes it easy to place all these order types from both web and mobile. You can set your stop-loss and take-profit directly when placing an order, or modify them later.

Pro Tip: Always combine stop-loss and take-profit orders when trading. This helps maintain discipline and avoid emotional decisions.

Final Note

Using the right order type is a key part of your trading strategy. It gives you more control over how trades are executed and helps you protect your capital.

Want to master trading orders and execution? Explore more in Pivex Academy, or test all order types using your Pivex Demo Account before going live.