forex®
Closing the Forex Deal Manually and Limiting Orders
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:
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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 .
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To
learn more about the trading advantages of Easy-Forex™, |
Limit Forex 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-Forex™ 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.
