5 Steps to Learn How to Trade Forex Market

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The currency prices are constantly fluctuating in value against each other, offering the multiple trading opportunities. Here are the 5 Steps to Learn How to Trade Forex Market successfully.

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5 Steps to Learn How to Trade Forex Market Unlike most financial markets the OTC over-the-counter foreign exchange market has no physical location or central exchange and trades for 24-hours a day through a global network of banks businesses and individuals. It means that currency prices are constantly fluctuating in value against each other offering the multiple trading opportunities. 5 Steps to Learn How to Trade Forex Market 1. Choose a Currency Pair Decide which currency pair you want to trade. With over 65 currency pairs to choose from picking a trading opportunity that right for you is important. There are lots of technical and fundamental research tools available can help you to spot currency trading opportunities to suit the trading style. We advise that you take your time to understand the amount of price volatility associated with the currency pair to help to manage your risk. 2. Decide to Buy or Sell Once you have picked a market you need to know the current price which you can do by bringing up an order ticket on the platform. All Forex is quoted regarding one currency versus another.

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Click on Link: How to Know Exactly Where to Buy and Sell https://youtu.be/AftvZvMy9v8 Each currency pair has a ‘base’ currency and a ‘quote’ currency. The base currency is the currency on the left of the currency pair and counter currency is on the right. Put simply when trading foreign currencies you would: 1. Buy a currency pair if you thought that the base currency would strengthen against the quote currency or the quote currency will weaken against the base currency. Your profits will rise in order with every increase in the exchange price. With every fall in the exchange price below your open level will get you a loss. 2. Sell a currency pair if you thought that the base currency would weaken in value against the quote currency or the quote currency will strengthen against the base currency. Your profits will raise in line with each point the exchange price drop. With every rise in the exchange price above the open level will get you a loss. Spread - FX pairs have two prices. The first price is the selling price known as the bid and the second price is the buy price known as the offer. The difference between the buy price and the selling price is known as the spread and is the cost of the trade. 3. Adding Orders An order is an instruction to automatically trade at a point in future when prices reach a particular level predetermined by you. You can utilize stop and limit orders to help secure that you lock in profits and reduce your risk when your respective profit or loss risk targets are reached. While not compulsory given the volatility in FX markets using and understanding risk management tools such as stop-loss orders is essential.

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A stop loss order is an instruction to close out a trade at a price worse than the current market level and as the name suggests is used to help decrease losses. There are two types of stop-loss orders: 1. Standard: A standard stop loss order once triggered closes the trade at the best available price. There is a risk so the closing price could be different from order level if market prices gap. 2. Guaranteed: A Guaranteed stop loss however for which the small premium is charged guarantees to close the trade at stop loss level you have determined regardless of any market gapping. The limit order is an instruction to close out a trade at a price that is better than the current market level and used to help lock in price targets. Click on below Link: To Mastering Stop Loss in Forex Trading https://youtu.be/1OEM-CFQgco Standard stop losses and limit orders are free to place and can be implemented in the dealing ticket when you place your first trade and you can also attach orders to existing open positions. 4. Monitor and Close your Trade Once open your trade’s profit and loss will now fluctuate with each move in the market price. You can track market prices see your unrealized profit/loss update in real time attach orders to open positions and add new trades or close existing trades. 5. Closing your Trade When you are ready to close your trade you just need to do the opposite to the opening trade. By closing the trade your net open profit and loss will be realized and immediately reflected in account cash balance.

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