Placing orders is one of the things that you will do when you are a forex trader. Here, it is important that you are aware how you will be able to place them in a correct way. When done correctly, you can manage your positions well. This is because order placement should be according to how you will be trading based on your style of entering and exiting the market. If you make a mistake here, you will only distort both of your entry and exit points. There are different types of orders and it is significant that you know what they are.The first one is market order, which is the most common. This is frequently used when a certain trader wants to execute an order straight away based on the price of the currency. This is either displayed as the bid or ask price. You can use this to go into a new position or exit it. The second one is the stop order, which turns into a market order when a specific price is attained. This is also used to enter or exit a new position. To trade here, you will need to enter a position in the market when trading breakouts. This is also used to limit the losses of the trader. Since everyone can encounter losses every now and then, you should find a way to reduce the amount that you will risk. This is done by means of the prearranged stop order.