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What is Internal Order Block? A Forex Trading Guide

4 min read

An internal order block is a mechanism used by forex brokers to protect their clients from excessive risk. It is a preset limit on the maximum amount of outstanding positions a client can have with a given broker. This means that a client will not be able to open positions beyond a certain value, and any positions opened beyond the limit will be blocked until the aggregate position of the trader falls below the internal order block limit. Internal order blocks are a useful tool for reducing risk in foreign exchange trading and are often used by professional traders or those trading high amounts of capital.