• Limit Order - A limit order is one of the most commonly used entry order types. Traders use limit orders to enter the market at a more advantageous price than the current market price.
• Stop Loss Order - While everyone loves a good deal, there will be times when traders look to enter the market at prices that may seem less advantageous.
• Contingent Orders - An order which is to be executed only if another order is executed first. An example of a contingent order would be to sell one specific investment if another specific investment has been bought. There is however some uncertainty with these types of order which makes managing risk more difficult.

Both Limit and Stop Loss orders can also be used to exit the market when used as an associated order. An associated limit order is an order that is part of an open position and is typically used to close the position at a predetermined rate.

When the market touches a predetermined rate, the order is triggered and the open position is closed and any unrealised profit becomes realised. An associated stop loss orders can also be used to exit the market or close open positions to limit potential losses by setting a stop loss at a level in which the trader has reached their maximum risk tolerance for that specific position.

• Market trends are smooth and noticeable since the market is only closed briefly on weekends meaning that market gaps (although possible) are limited, which results in greater and more consistent liquidity.
• As you are trading on margin, you can maximise your trading capital by use of smaller amounts of capital. This also allows you to trade multiple positions because it leaves you with more available capital.
• Spot foreign exchange is a true 24-hour market meaning you can take advantage of the continual volume no matter where you are, no matter what time zone you are in.
• Spot forex, is so large, that the liquidity of the forex market makes it very difficult for any one fund, bank or single trader to control a particular currency. This differs from the stock markets, which can be very susceptible to the buying and selling habits of large players.
• Bull or bear: You can profit from falling or rising markets by trading long or short.
• You can limit & manage your risk using a Stop Losses and Limit orders.

• The geared nature of margin trading markets means that losses can be magnified if the market moves against you.
• To make money from FOREX trading you have to get the market direction right. Unless you place a stop loss you could incur very large losses if your position moves against you.
• If you lose money you may need to top up your margin to keep your bet open.