OctaFX Forex Trading

Currency Pairs

Currencies are traded in pairs, with the value of one currency compared to another. Major pairs include

Exotic Currency Pairs

Pairs involving a major currency and a less common one, like:

Currency Options

Contracts that give the buyer the right, but not the obligation, to exchange money at a specific rate on a future date.

Order Types in Forex Trading
Traders use various order types to enter and exit trades. Here’s a breakdown:

Stop Orders(Stop-Loss Orders)

A stop order is used to limit losses or lock in profits. It triggers a market order when the currency pair reaches a specific price.
Example: Setting a stop-loss order to sell EUR/USD at 1.0900 if you bought at 1.1000, to limit losses if the price drops.

Advanced Orders

Advanced orders include more complex instructions, such as:

Stop-Limit Orders:

Combines a stop order and a limit order. A trade triggers at a stop price but only executes at a limit price or better.

Trailing Stops:

Adjusts the stop price automatically, following the market price by a set amount.