What is a Market Order?
A market order is an order placed with a bank or broker to buy or sell a specific amount of a currency at a specific level. In a trading environment, this is often called a “take profit” order and is the opposite of a “stop loss” order. If you are expecting to receive a sum of currency or are due to make a payment, placing an order is a way to enhance your profitability although it can be dangerous and should only be considered by a commercial enterprise in conjunction with a stop loss order.
Learn more about Market Orders
If you are due to receive or pay an amount of foreign currency to settle a suppliers invoice or to convert a receivable back into your home currency it is natural in a well-regulated market like foreign exchange to want to maximise your profit. However, placing a Market Order with a broker like Currencytransfer.com on which you will profit over and above the break-even rate is a risk which you should only consider if your risk of loss is covered.
For example, if you are due to receive a sum of euros from a customer and the rate today is 1.1400, you may wish to set a market order at 1.1200 should the market move in your favour and the euros that you are set to receive appreciate in value. However, in conjunction with that market order, you should also place a stop loss to ensure you are aware of your worst case.
Your business is as a commercial enterprise and risking cash flow and profitability on FX markets is best left to experts.