For individual currency traders trading through an online forex broker, there are four basic types of orders that can be placed. Those order types, and the conditions under which they are commonly used, are outlined below:

Market Order. A market order is the simplest type of order. It is simply an order to buy or sell at the current rate the broker is offering. It is best for traders looking to enter or exit a market immediately.

Entry Order. An entry order is simply to enter a position if the market reaches a certain rate. For instance, if the price for an asset is 1750, a trader who places an entry order to buy at 1700 will only have their order filled IF the market falls back down to 1700. Conversely, a trader could place an entry order to sell at 1800, in which case the sell order would only be filled if the market reached 1800. Some brokers will also allow traders to set an "expiration date" on their entry orders; in other words, if the market does not reach the entry price in the amount of time specified by the trader, the broker will cancel the order.

Stop Loss Order. As the name suggests, the stop-loss order is designed to stop losses for traders. For instance, suppose a trader buys an asset at 1500, but does not want to take more than a 50 point loss. In such a scenario, the trader can set a stop loss order to sell at 1450; this tells the broker to close the position if the market falls to 1450.

Limit Order. A limit order is designed to take profits on an existing order. For instance, if a trader buys at 1400 and sets a limit order to exit at 1450, it is essentially a "take profit" order; the order tells the broker to get out once the priced specified is reached.

These order types ultimately serve to help traders manage risk, as well as find optimal entry and exit points. As such, traders should have a basic knowledge of how each order type works, and how they can apply them to trading.

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