Introduction

Entry orders play a crucial role in forex trading as they allow traders to effectively execute their trading plans. Without the ability to execute trades seamlessly, all the hard work put into strategizing becomes futile. The forex market operates 24 hours a day, which means it is practically impossible for traders to keep a constant eye on it. Therefore, traders need a way to execute their trading plan that aligns with their daily schedule. This is where setting up forex entry orders becomes essential.

What is an Entry Order in Forex Trading?

A forex entry order is a specific type of order placed at a predetermined price level for a currency pair. Once the price reaches the designated level, the order is executed. However, if the price fails to reach the desired level, the order remains unexecuted. It is important to consider the type of order before placing it, as different types of orders have varying implications in forex trading.

Top 5 Benefits of Using Forex Entry Orders

1. Price Control

One of the primary benefits of using entry orders is the control they provide over the price level. Traders have the ability to indicate their desired price entry point for the trade execution. By designating a specific price level, traders can easily trade without constantly monitoring the market. This makes trading more efficient and convenient.

forex entry order deal ticket

Example:

The image below illustrates an example of a deal ticket where traders can set their desired price execution level. This process and layout are likely to be similar across most trading platforms.

[Image: Deal Ticket]
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2. Entry Orders Save Time

Forex entry orders are extremely useful for saving time. By setting an entry order, traders do not need to be present at their computers when a trend line is hit or when the price breaks out of its price channel. Traders can conveniently add an entry order to enter a trade if the price behaves as anticipated. The entry order takes care of waiting for the right moment, allowing traders to focus on other important tasks.

stops and limits forex trading order

Additionally, traders can take their trading efficiency one step further by setting conditional stop and limit orders. This ensures that even if the entry order is triggered while they are away from the platform, they still have measures in place to manage the trade effectively. This provides peace of mind and eliminates the risk of trades being executed without proper order management.

Example:

To set conditional stop and limit orders, traders need to fill in the “Stop” and “Limit” fields on the deal ticket when placing a forex entry order. These stops and limits are not active until the entry order is triggered and opens a trade on the trader’s account. This way, traders need not worry about their stop or limit being triggered before the entry order is executed.

[Image: Deal Ticket with Stops and Limits]

3. Better Money Management

Forex entry orders also contribute to better money management. Consider the amount of time traders dedicate to trading each day, which may range from a few minutes to an hour or more. In contrast, the forex market operates 24 hours a day. As a result, the odds of being actively monitoring the market at the optimal trading time are low.

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By utilizing entry orders, traders can aim to receive the most favorable prices even when they are not physically present at their computers. Attempting to trade within a limited viewing window may result in sub-optimal entries, potentially leaving money on the table. Entry orders, therefore, provide traders with the best chance of executing at optimal prices and maximizing their profits.

4. Accountability

Entry orders, when combined with stops and limits, help to keep traders accountable to their trading strategies. Emotions often hinder traders from making consistent and profitable trades. By adhering to a set of predefined rules and utilizing entry orders, traders eliminate the possibility of letting emotions cloud their judgment and deviating from their trading plans.

order type deal ticket for forex

Before engaging in trading, every trader should have a well-defined strategy with a set of rules. However, the allure of greed, fear, or over-confidence can sometimes lead traders astray. They might be tempted to take impulsive actions in hopes of getting lucky rather than taking calculated risks based on their edge. Entry orders minimize this risk and ensure that traders adhere to their strategies, thereby improving overall trading discipline.

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5. Support Trading on a Time Frame

Trading on a custom time frame can provide traders with more specific opportunities aligned with upcoming market news, political events, or company results. Entry orders allow traders to stipulate the expiry period for the trade. Some commonly used expiry options include “Good till cancelled,” which keeps the entry order active until manually deleted, and “Good till date,” which keeps the order active until a specified date.

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Example:

The image below illustrates how traders can select the expiry period for an entry order. This feature allows for flexibility and enables traders to align their trades with specific time frames and events.

[Image: Entry Order Expiry Period]

To further enhance knowledge and trading skills, traders are encouraged to explore additional resources. These include downloading free trading guides that cover the basics of forex trading and offer insights into various strategies. Additionally, traders can benefit from research analyzing the traits of successful traders, allowing them to gain a valuable edge in the markets.

In conclusion, entry orders serve as a vital tool in forex trading, providing traders with control over prices, time-saving benefits, improved money management, increased accountability, and the ability to trade on specific time frames. By utilizing entry orders effectively, traders can execute their trading plans with precision and optimize their trading outcomes.