Don't attempt to trade until you receive the training needed to become a
successful trader. There are substantial earnings to be made in the foreign
currency market, but trading in Forex is for the well-informed.
Easy-ForexT offers you a first-rate Forex trading platform and an unmatched
degree of service. Obviously, our experts are real people in real offices and
dealing rooms, ready to assist.
Trading foreign exchange is exciting and potentially very profitable, but there
are also significant risk factors. It is crucial that you fully understand the
implications of margin trading and the particular hazards and opportunities
that foreign exchange trading offers. However, if you are ever in doubt about
any aspects of a trade, you can always discuss the matter in-depth with one of
our dealers. They are available 24 hours a day.
The Forex market behaves differently from other markets. The speed,
volatility, and enormous size of the Forex market are unlike anything else in
the financial world. Beware: the Forex market cannot be controlled - no
single event, individual, or factor rules it. As such, it is the closest market to
what economists call "a perfect market"! However, just like any other
speculative business, increased risk entails chances for a higher profits as well
as higher losses.
Any currency can become very expensive or very cheap in relation to any or
all other currencies in a matter of days, hours, or sometimes, in minutes. The
unpredictable nature of currencies is what attracts an investor to trade and
invest in this market.
Truly ask yourself: "How much am I ready to lose?"
When you terminated, closed or exited your position, had you understood the
risks and taken steps to avoid them?
Some foreign exchange risk management issues
The following may come up in your day-to-day foreign exchange transactions.
Limit orders, also known as Take-Profit orders, allow Forex traders to exit the
Forex market at pre-determined profit targets. If you are short (sold) a
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currency pair, the system will only allow you to place a limit order below the
current market price, because this is the profit zone. Similarly, if you are long
(bought) the currency pair, the system will only allow you to place a limit
order above the current market price. Take-Profit orders help create a
disciplined trading methodology and make it possible for traders to walk away
from the computer without continuously monitoring the market.
Stop-Loss orders allow traders to set an exit point for a losing trade. If you are
short a currency pair, the Stop-Loss order should be placed above the current
market price. If you are long the currency pair, the Stop-Loss order should be
placed below the current market price. Stop-Loss orders help traders control
risk by capping losses. Stop-Loss orders are counter-intuitive because you do
not want them to be hit; however, you will be happy that you placed them.