Entry
In forex and other margin-based trading, an "entry" refers to the act of opening a new position in the market. It marks the starting point of every trade cycle. This article explains what an entry is, the key terms associated with it, and how it differs from an exit.
- The definition of an entry and which markets use the term
- Common entry-related terms such as long entry, short entry, and entry point
- The difference between an entry and an exit
- Practical FAQ to reinforce your understanding
Key Takeaways
- What "entry" means in forex and margin trading
- The difference between entry and exit in trade execution
- Common order types used for entries (market, limit, stop)
- Basic principles for identifying entry points
1. Definition and Purpose of Entry
What Is an Entry?
An entry is a term used primarily in margin trading. It means opening a new buy or sell position in a financial instrument such as forex, stock indices, or precious metals.
Synonyms include "going long" (buying) and "going short" (selling).
The opposite of an entry is an exit — closing the position.
A trade begins with an entry and ends with an exit. Your profit or loss is only realized when the position is closed.
Which Markets Use the Term?
The term "entry" is most common in markets that involve leverage or margin:
- Forex (foreign exchange margin trading)
- Futures markets
- Options markets
In equity spot markets, traders typically say "buy" or "sell" rather than "enter a position."
2. Common Entry-Related Terms
In practice, "entry" is often combined with other terms to describe a trading action more precisely.
| Term | Meaning |
|---|---|
| Long Entry | Opening a new buy position (expecting the price to rise) |
| Short Entry | Opening a new sell position (expecting the price to fall) |
| Entry Point | The price at which the position is opened |
| Entry Timing | Evaluating whether market conditions favor opening a position |
| Entry Rules | Predefined conditions for entering a trade, such as a moving-average breakout or a major data release |
3. Entry vs Exit
| Action | Description |
|---|---|
| Entry (Open) | Establishing a new trading position (buy or sell) |
| Exit (Close) | Closing an existing position to realize a profit or loss |
Together, the entry and the exit form a complete trade cycle. No profit or loss is locked in until the exit is executed.
4. Practical Applications and FAQ
Q1: I bought EUR/USD — is that an entry?
Yes. Whenever you establish a new position in the market — whether long or short — that action is called an entry.
Q2: Can I use the term "entry" in stock trading?
In equity spot markets, "buy" and "sell" are more natural. "Entry" is mainly used in leveraged or derivative products such as forex, futures, and CFDs.
Q3: Can a trader hold multiple entries at the same time?
Yes. You can open positions across different instruments — forex, gold, indices — simultaneously. However, managing your risk exposure and margin usage carefully is essential.
5. Summary
An entry is the act of opening a new position in margin-based trading. Whether you are buying or selling, establishing a new position counts as an entry. It is the counterpart of an exit, and together they represent the full lifecycle of a trade.
Understanding the concept of entry helps you evaluate when to enter the market and manage risk effectively — a foundational skill for any trader.
Further Reading
Titan FX Research. We produce educational content for investors, covering a wide range of financial instruments including forex, commodities (crude oil, precious metals, agricultural products), stock indices, U.S. equities, and digital assets.
Primary Sources by Category
- FX and margin trading fundamentals: Titan FX official site (titanfx.com), regulatory investor education materials
- Order types and trading terminology: MetaTrader official documentation (metatrader5.com)