Skip to main content

Placing Orders With Your Foreign Exchange Broker

Placing Orders With Your Foreign Exchange Broker

You need to know how to appropriately place orders with your brokers.  This will avoid any misunderstandings regarding your entry and exit strategies.  It is important that you place orders according to your trading method.


Market Orders


Market orders are the most common type.  It is used if you want to place the order at the market price at that precise moment.  The market price is the ask or the bid price that you see on your screen.  It is possible to use this type of order to either enter or exit a position.


Limit Orders


A limit order is used if you only wish to enter a new position or leave a current position at a stipulated price.  Your order will be completed once the trades reach the specified price or a better price.  A buy-limit order issues an instruction that a currency pair is to be bought when your specified price is reached and that price is lower than the market price currently.  A sell-limit order instructs the sale of your currency pair at the price on the market once it has reached the price you specified or a higher market price.


Prior to placing a trade, you must have a plan as to how far you wish to go for profits should that specific trade be in your favor.  This type of order gives you the opportunity to leave the market once you have reached your objective.


Stop Orders



A stop order is held until a price specified by you has been reached.  This is when it becomes a market order.  It is used to exit an existing position, or to enter a new one.  A stop order to buy is when you specify the purchase of your currency pair once the market price has reached the price you have specified or higher.  A stop order to sell is when you specify that your currency pair should be sold once the market price reaches the price you specified or lower.


It is possible for you to limit losses with stop orders.  You will go through periods when you encounter losses, but the important factor is to limit the size of the losses you experience.  Before you commence a trade, you must have a plan as to your point of exit if the market turns against you.  An effective method to use to overcome this problem and limit your losses is to implement a predetermined order stop point.  This is called a ‘stop-loss.’


You can also use stop orders to protect any profits you make.  If your trade has become profitable, you have the opportunity to move the ‘stop-loss’ that you placed, into a direction that will retain the momentum of profitability.



You should ensure that you have a firm grasp of the various types of orders that are available through your brokerage.  This knowledge will allow you to use the correct tools to reach your objectives and determine clear pre-determined points of entry and exit for all your trades.  There are other types of orders available, but limit, market and stop orders are the ones most often used.

Comments

Popular posts from this blog

The Most Effective Weight Loss Program Involves Better Habits

The Most Effective Weight Loss Program Involves Better Habits

Every member of the family probably recognizes the best way they can stay fit and remain slender, even if they require significant amount of weight loss. Typically, fit families are those that have established habits based on a healthy lifestyle. This is often challenging within a busy home, where both parents are off working throughout the day.


Managing a weight loss system in an active family requires dedication of consuming a balanced diet, and performing regular exercise. While it might appear to be much more convenient to simply stop by the fast food joint for dinner, than to prepare a healthy meal, in the long run it can cause significant issues and diminish the health of the family.


An effective weight loss program to keep the family fit and slender requires basic steps. These include:


Do Not Forget Breakfast – Yes it is true that the most essential meal of the day is breakfast. Without it, the body’s metabolism will…

Hair Loss In Women

Hair Loss In Women



Every one of us loses hair every day.   We lose it during our shower, we lose it while we blow dry our hair or when we brush our hair and this loss is all normal.  Typically we lose an average of 50 to 100 hundred hairs per day and normally for each hair we lose, we grow a new one to replace it.  However, at times hair loss may be a sign of a more serious medical condition that needs to be evaluated by a dermatologist for possible treatment.  Here are some possible causes of hair loss in women and how to deal with them.

Alopecia

This is an autoimmune disorder where the immune system attacks the hair follicles.  This disease affects 4.7 million people in the U.S. and occurs equally between women and men.  The cause is not known for sure, but may be triggered by illness or stress.  The condition can occur in three in three different forms including alopecia areata, alopecia universalis and alopecia totalis.

Skin Conditions of the Scalp

Unhealthy scalp conditions that…

5 Easy Ways To Download YouTube Videos In Ubuntu

Be it Ubuntu or any other platform, one thing I learned over the years is the fact that people like to download their favorite YouTube videos and would want to keep a local copy of it no matter how hard it is. Luckily, there are plenty of tools to do this in Ubuntu without any hassles. Here, we'll explore 5 of the most capable YouTube video downloading tools for Ubuntu.



Minitube: When it comes to "conventional" YouTube video streaming and downloading in Ubuntu, nothing beats Minitube. You can type any keyword, and Minitube will give you an endless stream of videos to watch, as simple as that. Minitube does not use the Flash Player either, which means lesser CPU consumption. And of course you can download videos in the quality you choose with the click of a button. What more, Minitube is available for download in default Ubuntu repositories (Edit: Ubuntu 16.04 LTS supported). Click the link above.

Youtube-dl: Command line tools are a big no-no to many. But I would argue oth…