Page Title Background

What are transaction, position, and order on the Forex market?

What are transaction, position, and order on the Forex market?

What are transaction, position, and order on the Forex market?

These terms often have a similar meaning in articles and posts about Forex trading. However, although related, they are quite different.

A transaction is a single purchase or sale of an asset. When you click on the “BUY” or “SELL” buttons in the terminal, you are making a transaction. After completing the transaction, you have an open position on the Forex market.

An open position is a position that has not yet been covered by a reverse transaction. You are waiting for positive market dynamics for your open position. Let's say after a while you decide to close the position. Then you need to click on the “Close” button in the trading terminal, and the position will be closed with a reverse transaction. The principle of Forex trading is designed in such a way that each of your positions is opened and closed with a transaction.

A closed position is a position for which a reverse transaction was made and the result was fixed.

There are also concepts of a long and short position. A long position is one that was opened with a buy trade (BUY). A short position is one that was opened with a sell trade (SELL).

An order is an instruction to execute an operation to buy or sell an asset at a certain price. When you click on the BUY or SELL button in the trading terminal, you are giving an order to make a transaction to open a position in the market.

“BUY” and “SELL” are simple market orders. Market orders are instructions to buy or sell that are executed at the current Bid or Ask price.

Pending orders are orders that are executed when a certain price is reached, which is specified in the parameters of the order itself. Sell ​​Stop, Sell Limit, Buy Stop, and Buy Limit are pending orders.

Stop orders are instructions that, when executed, make a reverse transaction and the position is closed. These orders are Take Profit and Stop Loss.

Article last updated: 2022-05-11

What are requotes and why do they happen? What is Forex?

Geratsu LLC (registration number: 860 LLC 2021) is regulated in accordance with the license act "LIMITED LIABILITY COMPANIES ACT, CHAPTER 151 OF THE REVISED LAWS OF SAINT VINCENT AND THE GRENADINES, 2009." of the St. Vincent and the Grenadines.

Address: First Floor, First St Vincent Bank Ltd Building, James Street Kingstown, St. Vincent and the Grenadines

Registration Number: 860 LLC 2021

Contact Information

Location: First Floor, First St Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines

Tel.: +1 844 200 0183

Email:

  • Claws & Horns logo
  • Ars Lex Limited logo
  • MetaQuotes logo

Geratsu LLC does not provide services to residents of the EEA countries, USA, Israel, Russia and Japan.

Risk Warning

18+

Trading on the financial markets involves risks. Forex, futures, CFD's, and other financial contracts are complex instruments that are traded primarily with margin leverage that boosts a level of risks even higher. The leverage can work for both as your advantage so your disadvantage. Hence this type of activity may not be suitable for all investors and for you in particular. You clearly agree that loosing your investment will not entail your life quality decrease and will not affect your health in any ways. You shall not risk more than you're ready to lose. Ensure you understand all the risks before entering a market. By using Geratsu website and its services you agree that you fully understand all the risks involved, and confirm your investment objectives and level of experience. See our full Risk Disclosure for more details.

All materials and services provided on this site are subject to copyright and belong to Geratsu LLC. Any use of materials of this website must be approved by an official representative of Geratsu, and shall contain a link to the original resource. Any third-party companies do not have the rights to use materials of Geratsu website as well as any distorted writing of the word Geratsu. In case of violation of these rules, they will be prosecuted in accordance with legislation of the intellectual property protection.