Stop-loss - is an order that has a very important role in Forex trading, which can be installed during or after the transaction. The purpose of this order - to limit potential losses, ie reaches a certain value quotes stop-loss `a - your position is automatically closed at a loss, or perhaps with a plus, if stop-loss order has been moved either zero or a plus if the price reaches the side opening of the transaction. The term Take-profit - an order similar to warrant stop-loss, but the exact opposite, ie your position is automatically closed when the price reaches the value order.
Example: when you open a long position on the Forex (purchase), you open up the price ask (offer), and close it position at the price bid (selling). In this case, the stop-loss order can be set under the price bid, and take-profit higher than the price ask. When you open a short position in forex (short, respectively, sell) we are opening the price bid, respectively, close position at a price ask (buy). In this case, the stop-loss order, we can set prices above ask, and take-profit lower bid.
No comments:
Post a Comment