EURO.uz -The Forex quick guide for beginners and private traders

| Forex | Форекс
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The Forex quick guide for beginners and private traders

Step (4): Closing the deal manually


Using the deal defined in the screen shot above, the deal definitions are: Buy
USD; sell EUR; EUR10,000; Deal rate 1.1952; Stop-Loss 1.2052; no Take-Profit
defined; margin USD 100.

The table below shows what would occur under various scenarios:

Closing Rate

Profit / Loss

Comments

Change in Exchange Rate

Rate of return oninvestment

1.2200

Loss USD 100. 00

Maximum loss; the deal was automatically closed already on 1.2052

-2.0%

-100%

1.2150

Loss USD 100. 00

 

Maximum loss; the deal was automatically closed already on 1.2052

-1.6%

-100%

1.2100

Loss USD 100. 00

Maximum loss; the deal was automatically closed

-1.2%

-100%

 

 

already on 1.2052

 

 

1.2050

Loss USD 98. 00

 

-0.8%

-98%

1.2000

Loss USD 48. 00

 

-0.4%

-48%

1.1950

Profit USD 2. 00

 

0.0%

2%

1.1900

Profit USD 52. 00

 

0.4%

52%

1.1850

Profit USD 102. 00

 

0.9%

102%

1.1800

Profit USD 152. 00

 

1.4%

152%

1.1750

Profit USD 202. 00

 

1.9%

202%

1.1700

Profit USD252. 00

 

2.4%

252%

The table shows the effect of "leveraged" trading: the trader invests USD 100,
for a EUR 10,000 contract. Therefore, a small change in the currency
exchange rate reflects a much higher change in value.

The Trader may lose up to 100% of the investment (USD 100), but can gain an
unlimited profit.

The table also illustrates the value of PIPs. In this deal, every PIP (the fourth
decimal digit) results in a profit or loss of USD 1.00 to the trader. So long as
the trader gains on this deal, each PIP is worth $1 on a $100 margin leveraged
at 1:100 .

Limit Orders (reserving a Day-Trading deal)
Some dealing rooms and platforms offer the trader the ability to set a
"reserved" rate for a deal, that would "capture", if and when such a rate
occurs in the market, resulting in a Day-Trading deal.

The trader can define the rate he/she wishes, letting the platform do the
watching, until (if and when), it appears in the market. Easy-ForexT does not
charge additional fees for Limit Orders. Setting up a Limit Order is very
similar to the process described above for Day-Trading. Should the reserved
deal not be realized, the funds which were allocated for it will be returned to
the trader's account.

You don't have to miss a trading opportunity when you go on vacation! Make a
Limit-Order with your preferred currency rate, and Easy-ForexT will automatically
open the deal for you (if indeed it occurs in the market), at no costs!

 

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