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Forex Secret Tips – Grasp The Basic Order Types For Your Forex Trades

13th December
2011
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The takeaway Forex trading tip from this article is: get a good grasp of the basic Forex order types and apply them correctly to your Forex trading. They can help you understand the various complex orders and equip you with knowledge to create customized orders too.

There are several ways to open and close your Forex trades, depending on how you plan to enter and exit the markets. The three basic Forex order types are: market order, stop order and limit order. Each order type can apply to both trade opening and closing.

Remember that a Forex quote has a bid and ask price. When you issue a buy order, you pay the ask price of the Forex quote; when you sell, you hit the bid price. The difference between bid and ask prices is called the spread — this is what your broker earns each time you trade.

Take an example where EURUSD is currently quoted at 1.3388/1.3390. If you open a long position (i.e. you buy EUR, sell USD), you would pay 1.3390 to get into the markets. Should you decide to close the position immediately, and assuming prices did not move, you can only sell back at 1.3388. The 2-pip spread in this trade is pocketed by your Forex broker as commission. Which means just to break even requires prices to tick up 2 pips, in your favour.

Now for the basic Forex order types, starting with the straightforward market order. This is followed by the easy limit order, and lastly, the more confusing stop order. The combination of these order types into complex Forex orders is also covered briefly.

** Market Order **

The market order allows you to trade at the current prevailing price. At the instant your order reaches the broker, you are filled based on the Forex quote then and there. This may not be the quote you saw on your trading terminal when you issued that market order, depending on how fast the markets were moving and how long it took for the Forex order to get routed.

In the nutshell, a market order means “Get me filled, now!”; hopefully at your desired price and if not, at a reasonable price.

** Limit Order **

This order allows the Forex trader to set an exact price to fill an order. A buy limit order is always set below current prices and a sell limit order always above. Contrast this with stop orders, which will be discussed later, where the price levels are at opposite locations.

In case you issue a limit order wrongly, you could get filled immediately, depending on how your broker processed the order. To illustrate, if EURUSD is now quoting 1.3385 ask and a trader enters a buy limit order at 1.3390, the order gets filled at the better price of 1.3385.

The main use of a limit order is to set a target price for a Forex trade, so that profits can be banked in automatically once that target is reached. In the case of a trade with multiple positions, setting tiered limit orders can allow the Forex trader to cash out progressively as prices continue to move in favor of the trade.

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Forex Orders – What Are They and How Do I Use Them?

13th December
2011
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Basic Order Types

Market Order

This is an order to buy or sell at the current market price. If you wanted buy EUR/USD at its current price you would simply click “Buy” and your order would be executed, instantly, at the quoted price.

Limit Order

You use a limit order to buy or sell a currency at a specific price and only within a specific period of time. So, the order has two parts: price and duration. Here is how it works:

Your own analysis or your FOREX System indicates that it is a good time to buy EUR/USD if and when its price hits 1.3938 within the next two days.
You place a buy limit order and set the price at 1.3938 and you specify exactly how long you want the order to remain active.

By using the limit order, you can avoid having to sit in front of your computer while you wait for a currency pair to reach a specific price at which you want to buy or sell.

Stop-loss Order

This type of order does just what its name implies. It is designed to prevent additional monetary loss if an existing (open) trade goes against you. It remains in effect until the stop-loss order is activated (the position is liquidated) or until you cancel the order. Here is how it works:

You place an order to buy (go long) EUR/USD at 1.3938
At the same time, you place a stop-loss order at 1.3908 so that if your judgment is wrong and the trade goes against you (EUR/USD depreciates), you will not lose more than 30 pips. If EUR/USD depreciates to 1.3908, your broker would automatically execute a sell order and close your position for a 30 pip loss.

So this is one more type of order that relieves you from having to sit in front of your computer while you wait for something to happen. The stop-loss order is extremely useful and can prevent you from losing more than you can afford or want to lose.

GTC (Good ‘Til Canceled)

A GTC order is just what it sounds like: It remains active until you cancel it. There is nothing automatic about it. Once you have placed the order, it is up to you to keep your eyes on it.

GFD (Good For the Day)

If you want to place an order that will remain active only until the end of the day’s trading, this is the one for you. For the U.S., this usually means it will remain active until 5 PM EST but check with your broker to be sure about this.

Article Source: http://EzineArticles.com/2834026

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Protective Order FAQs

13th December
2011
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What is a protective order?
A protective order is a court order that stops or prevents another person from engaging in abusive behavior such as physical or mental abuse, harassment or stalking. In some situations, the orders can be used to determine child custody, child support or counseling arrangements.

Who can obtain a protective order?
Adults in Illinois may obtain protective orders from either their nearest courthouse, the courthouse where property is located if the property is part of the order, or the courthouse where a related case (for instance a divorce or criminal case) is already taking place. Minors are generally allowed to obtain protective orders themselves in these same locations; however, in Cook County a parent or guardian must file on behalf of the minor.

Who can I obtain a protective order against?
You can only file for protective orders against household and family members. This includes relatives like spouses and ex-spouses, children, parents and siblings and household members like live-in boyfriends and girlfriends or roommates. You may also apply for an order against certain other individuals, even if you are not related and they never lived in your household, including current and ex-significant others, caregivers, and the other parent of your child.

Do protective orders apply to same-sex partners?
Yes, all the rules for protective orders apply equally to people involved in same-sex relationships.

What are the three types of protective orders?
Depending on the situation, you can obtain an emergency, interim or plenary protective order. You can receive an emergency order without the other party appearing in court. The order will typically last between 14 and 21 days, until a formal hearing can be scheduled. A plenary order is permanent, lasting up to 2 years with unlimited renewals, if appropriate. The plenary order is issued only after a formal hearing where both parties argue before the court whether they think the order is needed. An interim order is issued by the court, if necessary, to extend the protective order between the end of the emergency order and the hearing for the plenary order. Both parties will need to appear before the court before the interim order is issued.

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9 Common Forex Trading Orders

13th December
2011
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When trading forex, there are several order types that the retail trader can place in the market place to protect themselves from adverse market conditions and to capitalize on opportunities that the market often provide. We will start with the basic orders that should be available in any trading platform. For beginners, you should keep to the simple types until you get comfortable with your trading platform. Never force yourself to take any trade for the sake of playing with order types.

It can be said that all orders in the market place boils down to Buy or Sell orders. Remember that when trading currency pairs you are selling one currency and simultaneously buying another. Here are some of the common order types:

(1) Buy Order – Place this order when you anticipate that the market will rise. Often, you have to provide some parameters with your buy order. For instance, do you want to buy the currency pair at the price it is currently trading at, or do you have a particular price in mind? What if your order cannot be filled at the price you are specifying, what price range is comfortable to you? This is called slippage. For example, the GBP/USD is trading at 2.0190 and you anticipate that it will go up higher; you can place a buy order to buy at 2.0190. However, there is no guarantee that you will get in at that price, many brokers will require that you specify a slippage. Continuing with our example, suppose, you are comfortable buying as low as 2.0185 or at most at 2.0195, then you would specify a slippage of 5 pips. This is for your protection. Suppose just before your order becomes active, their is a news event, that makes GBP/USD to drop down 50 pips, are you still willing to buy? – maybe the trend has now changed downwards, your answer may be no. In addition, you must specify the time range when the order will be active. Your buy entry price should be dictated by your trading strategy or system.

(2) Sell Order – Place this order when you anticipate that the market will fall. Sell order have the same kinds of parameters we discussed under Buy Order.

(3) Market Order – You want to get in or out of the market at the current prevailing price. Execution is typically guaranteed, but price is not. A market order ensures that you will get into or out of the market.

(4) Limit Order – An instruction to execute an order if a market moves to a more favorable level (i.e. an instruction to buy if a market goes down to a specified level or to sell if a market goes up to a specified level. Execution is typically not guaranteed. Your broker will use their “best efforts” to get your order filled. This order can be used to enter or exit a position.

(5) Stop Order – An instruction to execute an order if a market moves to a less favorable level (i.e. an instruction to buy if a market goes down to a specified level, or to sell if a market goes up to a specified level. A Stop Order is often placed to put a cap on the potential loss on an existing position; which is why Stop Orders are sometimes called Stop-loss Orders. Never trade without placing a Stop-loss order. A trade you think has all the right ingredient for success may turn into a fat loss right before your eyes. Always protect yourself so that you can be alive to trade another day.

(6) Trailing Stop Order – A trailing stop order is similar to Stop Loss order. The only difference is that you are already in profit and you want to protect your profit. Trailing Stop Order then allows you to configure your stop order to continue to follow the price movement in real-time by specifying the distance in pips you would like your stop to move. For example, you have a long USD/JPY position, which you bought at 111.50 and you set a Stop Order to sell USD/JPY at 111.10, in case USD/JPY starts to fall. This Stop Order will close your position with a 40-pip loss if USD/JPY drops to 111.10. However, suppose USD/JPY moved up to
111.90. You can move your Stop Order to sell at 111.70 which will luck in a profit of 20 pips for you in case USD/JPY were to stop its upward movement.

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All About Charging Orders – A Comprehensive Review

13th December
2011
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There are relatively few types of assets that are statutorily protected from claims of creditors. Membership interests in limited liability companies (“LLCs”) and partnership interests are afforded a significant level of protection through the charging order mechanism.

The Importance of History

Before the advent of the charging order, a creditor pursuing a partner in a partnership was able to obtain from the court a writ of execution directly against the partnership’s assets, which led to the seizure of such assets by the sheriff. This result was possible because the partnership itself was not treated as a juridical person, but simply as an aggregate of its partners.

The seizure of partnership assets meant that the sheriff could shut down the partnership’s place of business. That caused the non-debtor partners to suffer financial losses, sometimes on par with the debtor partner, a process one court referred to as “clumsy.”

To protect the non-debtor partners from the creditor of the debtor-partner, and to keep the creditor out of partnership affairs, it was necessary to keep the creditor from seizing partnership assets. This was also in line with the developing perception of partnerships as legal entities and not simple aggregates of partners. These objectives could be accomplished only by limiting the collection remedies that creditors previously enjoyed. Because any limitation on a creditor’s remedies is a boon to the debtor, over the years charging orders have come to be perceived as asset protection tools.

The rationale behind the charging order limitation applied initially only to general partnerships, where every partner was involved in carrying on the business of the partnership; it did not apply to corporations because of their centralized management structure. However, over the years the charging order protection was extended to limited partners and LLC members.

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Defining Futures Orders

13th December
2011
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Futures orders have a simple definition but a wide variety of possibilities. Not unlike options trading in the stock market, futures orders cover a number of different trading scenarios.

1.Market Orders – This is the most basic of futures orders. It is the same for either buying or selling; once the order reaches the trading pit, it is executed for the best price available.

2.Limit Orders – A limit order is a futures order used for buying or selling when a certain price is reached. A limit order to buy is placed below the current market price and a limit order to sell is placed above the current market price. When the target price is reached, a market order is executed to buy or sell based on the limit order.

3.Stop Orders – Stop orders are used in futures markets as protective techniques for either buying or selling. Three purposes of stop orders are:

a.Reducing losses on long or short positions

b.Opening new long or short positions
c.Protecting a profit on an existing long or short position

A buy stop order is placed above the market and a sell stop order is implemented below the market.

4.Market If Touched – This futures order is the direct opposite of a stop order. Sell Market If Touched orders are only executed if the price is above the market while but buy Market If Touched orders are only executed if the target price is below the market when implemented. An MIT order is usually used to enter the market or initiate a trade. In commodities trading, an MIT order is similar to a limit order in that a specific price is placed on the order. However, an MIT order becomes a market order once the limit price is touched or passed through. An execution may be at, above, or below the originally specified price. An MIT order will not be executed if the market fails to touch the MIT specified price.

5.Stop Limit Order – A stop limit order is a futures order that lists two prices and is an attempt to gain more control over the price at which your stop is filled. The first part of the order is written like a regular stop order. The second part of the order specifies a limit price. This indicates that once your stop is triggered, you do not wish to be filled beyond the limit price. Stop limit orders should usually not be used in commodity trading when trying to exit a position.

6.Market On Opening – This is a futures order that is to be executed within the opening range of trading.

7.Market On Close – This is the opposite of a Market On Opening. This futures order is given to execute a trade in the closing seconds at the best available price.

8.Fill Or Kill – Fill Or Kills are futures orders used by customers wishing an immediate fill, but at a specified price. A floor broker will likely bid the order two or three times and immediately return either a fill or an unable.

9.Spread – An investor is likely to use a Spread to take advantage of the differences in two prices. For this futures order, a long and short position will both be taken hoping to exploit the difference in price. For example, buy 15 October Corn Futures, sell 15 November Corn Futures plus 2 to the November sell side. This spread order means to sell the spread when the November corn is 2 points higher than the October corn.

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What Really Sells in Mail Order Magazines

13th December
2011
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