There are several ways of entering a trade with so called "orders". The five main order types are:
Market Orders are the most common type of orders in Forex. These are instant-execution orders - buying or selling a currency instantly at the best available price. For example: GBP/USD is trading at 1.1950/53. With a buy market order, you would buy pound at the ask price of $1.1953, and with a sell market order, you would sell euros at the bid price of $1.1950.
Unlike market orders, limit orders become active only if certain conditions are met. For example, if GBP/USD is trading at 1.1950 at the moment, and you think that it will rise further to 1.3000 but then fall in price, you would use a sell limit order placed at 1.3000. After the price reaches 1.3000, the sell limit order becomes a usual sell market order and executes the short position. The main advantage of limit orders over market orders, is that you don’t have to wait for the price action to happen to place a market order. The limit order will do the waiting for you
Just like limit orders, stop orders also become market orders once certain conditions are fulfilled. You’d use stop orders to buy above the market, or sell below the market.
A take profit order automatically closes your position when the target price is reached. You can specify take profit orders inside any other types of orders, like market orders. For example, you placed a market order on GBP/USD at $1.2500, and specified a take profit level of $1.2600. The market order becomes instantly active, and will remain active until the price reaches $1.2600. At this point the take profit order will automatically close your position with a 100-pips profit
Stop loss orders are similar to take profit orders, with the difference that they are used to limit your loss. Once the market goes against you and hits the stop loss price, the position will be automatically closed to prevent further losses. Let’s say that in the previous example your analysis was wrong, and GBP/USD fell from $1.2500 to $1.2400. By using a stop loss at $1.2450, the position would be closed leaving you with a loss of 50 pips instead of 100 pips or more.