An order is how a buy or sell position is entered or exited with the broker.
Market Order
This is either to buy or sell at the current available price from the broker. The intention of a market order is to immediately open the position.
Pending Limit Order
Limit orders are ‘Buy limit‘ and ‘Sell Limit‘ orders.
With a Buy limit order you expect the price to go down to that level and you expect the price to rise after the order is executed. So that your buy entry is executed at a lower price and if your prediction is correct, the pair moves up and gives you profit.
With a Sell Limit, you expect the price to go up, and trigger your order and then head back down so that it gives you profit.
Both Buy Limit and Sell Limit orders are pending orders because they are not triggered at the time of the order but they are triggered when the price reaches the specified level.
Pending Stop Orders
Pending stop entry orders are ‘Buy Stop‘ and ‘Sell Stop‘ orders.
With a Buy Stop order you expect the price to go up and fill the order at the specified level and then continue going up to give you profit.
With a Sell Stop order you expect the price to fall and fill your order at the specified level and then continue falling to give you profit.
Buy Stop and Sell Stop are also pending orders because they are not executed at the time of order but they are triggered when the price reaches the specified level.
Stop Loss and Take Profit levels
Stop Loss is the level beyond which you don’t want to take any more loss. The market can go against your trade for so long before it reaches the level where you don’t want it to increase your loss anymore, so stop loss level is the level you specify so that the trade is closed as soon as it reaches that level, to prevent any additional loss.
Take profit is the level at which you want the trade to close in profit. When the trade has gathered enough profit you want to close it automatically. That is the level at which you enter your stop loss, and the broker will close it automatically if the pair reaches that level.