Entry Order sounds like one of those complicated forex terms that can scare you away, but don’t worry, it’s much simpler than it sounds. 

If you’ve ever wondered how traders plan to buy or sell in the forex market without staring at their screens all day, then this term will open your eyes to something truly helpful. 

Stick around because you’re about to discover the power behind entry orders and how they can help you trade smartly, even when you’re not actively watching the market.

What Is an Entry Order?

An Entry Order is a type of instruction you give your forex broker. This instruction tells them to buy or sell a currency pair at a specific price that they choose. 

It is not executed immediately. Instead, the order only becomes active when the market reaches the price you set.

Think of it like setting an alarm on your phone. You don’t have to wake up until the alarm goes off. 

In the same way, an entry order stays in the background until the market price reaches the level you planned for. 

This tool helps you trade automatically, saving you time and letting you stick to your strategy without making emotional decisions.

How Does an Entry Order Work?

Let’s say you believe the EUR/USD pair will rise in value, but you only want to buy when the price goes above 1.1000. 

You can set an entry order that tells your broker, “Buy EUR/USD when the price hits 1.1000.” Until the price reaches that level, nothing happens. 

Once it does, your broker will execute the order immediately.

There are two main types of entry orders in trading, limit entry orders and stop entry orders. 

1. Limit Entry Order

A limit entry order is used when you want to buy at a price lower than the current market price or sell at a price higher than the current market price.

Let’s say the current price of EUR/USD is 1.2000. You believe the price will drop to 1.1900 before going up again. 

You can place a buy limit order at 1.1900. If the price drops to 1.1900, your order will be executed automatically.

For selling: If EUR/USD is at 1.2000 and you expect it to rise to 1.2100 before falling, you can place a sell limit order at 1.2100. Once the price hits 1.2100, your order will be triggered.

2. Stop Entry Order

A stop-entry order is used when you want to buy at a price higher than the current market price or sell at a price lower than the current market price. This is often used to join a market trend.

For buying, If the EUR/USD is at 1.2000 and you believe it will keep rising if it reaches 1.2100, you can place a buy stop order at 1.2100. Your order will execute when the price climbs to 1.2100.

Also for selling, If EUR/USD is at 1.2000 and you think it will keep falling if it drops to 1.1900, you can place a sell stop order at 1.1900. Once the price falls to 1.1900, your order will activate.

Why Is an Entry Order Important?

Entry orders allow you to plan and stay disciplined. They remove the guesswork and the constant monitoring of the market. 

These are why it matters:

1. Saves Time

You don’t need to sit in front of your trading platform all day.

2. Avoids Emotional Decisions

It locks in your plan, so you don’t make rash choices based on fear or greed.

3. Helps You Stick to Your Strategy

It makes sure you follow your trading rules instead of acting impulsively.

4. Works Automatically

The order triggers even if you are asleep or busy with other activities.

Example of an Entry Order

Let’s say you think the GBP/USD pair will rise after crossing 1.2800. 

You don’t want to buy at the current price of 1.2700, but you’re confident that if it breaks 1.2800, the price will keep climbing. 

You place a buy-stop entry order at 1.2800.

• If the price hits 1.2800, the broker executes your order, and you start trading.
• If the price stays below 1.2800, nothing happens, and you don’t lose any money.

Now, you believe the price will drop after falling below 1.2500. 

You place a sell-stop entry order at 1.2500.

• If the price falls to 1.2500, the broker activates your order, and you sell.
• If the price doesn’t drop that far, the order stays inactive, and you remain safe.

Tips for Using Entry Orders

Choose a price that matches your trading plan and analysis.

Protect your trade with stop loss and take profit settings to manage risks and lock in gains.

Make sure your entry order is set correctly before you leave it to the market.

Use charts and patterns to determine the best price levels for your entry orders.

Conclusion

An Entry Order is like having a personal assistant in the forex market. It helps you stick to your plan, avoids unnecessary stress, and executes your trades automatically when the market reaches your desired price. 

With entry orders, you don’t need to be a forex expert to take control of your trades. All you need is a good strategy and the right price levels to get started.

Start practicing on a demo account to see how they can work for you.