A market order is an order type that immediately opens up a trade at the best available price(s). So if you were wanting to open a trade right now, a market order is the right choice for you.
The easiest way to place a market order on the Trading Station Desktop is by left-clicking directly on top of the Sell or Buy price in the Dealing Rates window.
(Created using FXCM Trading Station Desktop)
The only thing left to do is choose the trade size (amount of 1k lots) and click OK to open the trade on your account. While most traders use the default “At Market” and “GTC” market orders, there are other types of market orders you can use as well.
At Market – The default setting. Your entire order will be filled at the best price or the best prices (if there is not enough liquidity to fill your order at the single best price). There is a possibility that your order is filled at a better or worse price depending on how quickly price is moving. This difference between the requested price and the executed price is what’s known as slippage.
Market Range – This setting allows you to set an acceptable price range (in pips) to execute orders. If your order cannot be filled within the range selected, the order will be canceled and no trade will be opened. For example, a setting of 0.0 would mean your order would need to be filled at the exact price shown when you click OK or the order would not be filled. The higher you set the range, the more likely the order will be filled.
Time In Force
Good ‘Til Canceled (GTC) – The default setting. Your entire order will be filled at the best available price(s) at the time the system receives it. In some situations, the best price available may not have enough liquidity to fill your entire order. In this case, as much of the order is possible will be filled at that price level, while the remaining portions of that order will be executed at the next best available price(s), until your entire order is filled.
Immediate or Canceled (IOC) – This allows you the opportunity to have any part of your order filled at the best available price(s) with the remaining unfilled amount canceled if liquidity is unavailable. This order type is useful during news announcements and for currency pairs which tend to have less liquidity during certain trading sessions (example: GBP/USD and GBP crosses during Asian Hours).
Fill or Kill (FOK) – This means that you want 100% of the order executed at the best available price (or range, if you selected "Market Range"), and if the entire 100% of the order is not available, the order will not execute at all.
Quick Tip: You may also create market orders by right-clicking on any chart and selecting “Create Market Order…” or by using the keyboard shortcut “Shift + M”.
---Written by Rob Pasche
To contact Rob, email firstname.lastname@example.org.