Market Order

The market order is an order to buy/sell at the current market price.
 
Pending Orders

You can use pending orders to prepare requests to open positions on specific market prices. They are only executed at a predefined price in the future, when the marked reached the order level or has gone higher.
 
There are several types of pending orders:
 
Limit Orders

Limit orders are used when the trader desires to buy at no more or sell at no less than a specific price.
 
Buy Limit - an order to open a Buy position on a specific predefined “ASK” price. The predefined price for the order has to be a lower price than the current price at the moment of placing the order. This type of order is usually placed in anticipation of the fact that the price will increase after having fallen to a certain level.

Sell Limit - an order to open a Sell position on a specific “BID” price. The predefined price for the order has to be higher than the current price at the moment of placing the order. This type of order is usually placed in anticipation of the fact that the price will start falling after having increased to a certain level.
 
Stop Orders

Stop orders are used to buy or sell once the price has climbed above or dropped below a specific stop price.
 
Buy Stop - an order to open a Buy position on a specific predefined “ASK” price. The predefined price for the order has to be a higher price than the current price at the moment of placing the order. This type of order is usually placed in the anticipation of the fact that the price, having reached a certain level, will keep on going up.

Sell Stop - an order to open a Sell position on a specific “BID” price. The predefined price for the order has to be a lower price than the current price at the moment of placing the order. This type of order usually placed in the anticipation of the fact that the price having reached a certain level and will keep on going down.

To resume:

- A Buy Limit order is executed when the Ask price in the quotes flow becomes equal or lower than the order level.
- A Sell Limit order is executed if the Bid price in the quotes flow becomes equal or higher than the order level.
- A Buy Stop order is executed if the Ask price in the quotes flow becomes equal or higher than the order level.
- A Sell Stop order is executed if the Bid price in the quotes flow becomes equal or lower than the order level.
 
 
Stop Loss and Take Profit Orders

You can also manage your pending requests as well as your open positions in terms of limiting losses or to insure your profit, using Stop Loss and Take Profit Orders:
 
Stop Loss - an order to help you minimize losses if the market starts to move in an unprofitable direction. 

Take Profit - an order intended to close the open position when the market has reached the profit level predefined by the trader.
 
Using this type of orders allows you to manage the risk and safeguard your positions without sitting in front of the computer. These orders are executed automatically as soon as the price reaches the order level.
 
Execution:

- The "Take Profit" order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or higher than the order level.
- The "Stop Loss" order on an open Buy position is executed if the Bid price in the quotes flow becomes equal or lower than the order level.
-  The "Take Profit" order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or lower than the order level.
- The "Stop Loss" order on an open Sell position is executed if the Ask price in the quotes flow becomes equal or higher than the order level.
 
When other orders are attached to pending orders we are talking then about contingent orders. A Stop Loss or a take profit can be placed at the same time as the pending orders. After a pending order has triggered, its Stop Loss and Take Profit levels will be attached to the open position automatically.
 
GTC
GTC (Good ‘til cancelled) is an order to buy/sell at a set price that remains active until you decide to cancel it.
 
GFD
GFD (Good for the day) is an order to buy/sell at a set price that remains active until the end of the day.
 
OCO
OCO (One-Cancels-the-Other Order) is order stipulating that if one part of the order is executed, then the other part is automatically cancelled.
 
Each broker has its own rules to regulate pending orders.