- 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.
