Order types and execution

Market orders

A market order executes immediately at the price available in the market. Use one when getting into the trade now matters more than the exact entry price.

Pending orders

A pending order is an instruction to buy or sell at a specified future price. The main types are:

• Buy Limit — buy below the current price
• Sell Limit — sell above the current price
• Buy Stop — buy above the current price
• Sell Stop — sell below the current price

Limit orders are for entering on a pullback into your level; stop orders are for entering on a breakout through it. Which you use follows from your strategy, not from preference.

How positions are closed

1. Manually — you close the position yourself
2. Automatically — the position hits your stop-loss or take-profit
3. Stop out — forced closure when the margin level reaches the stop out level

Instant execution versus market execution

Instant execution fills the trade immediately at the price you specified. Market execution fills at the best price available in the market, which may differ slightly from the price you saw — this is what allows the order to be filled quickly and without dealer intervention.

Caveo FX executes on market execution. See Slippage and hedging for what that means in fast markets.

Price alerts

You can set alerts at specific prices so you are prompted to adjust a stop-loss or take-profit as the market moves, rather than watching the screen.