Trading Process - 0 views
started by johnarnold123 on 14 Apr 16
started by johnarnold123 on 14 Apr 16
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started by johnarnold123 on 14 Apr 16
Trading process consists of two major steps Order opening
and Order closing. With the help of the forex technical analysis and the online
forex broker, the journey of the trading process begins. The forex technical
analysis gives the required information about the market and helps to decide on
the trade. The online forex broker assists in completing the transaction.
As stated earlier, trading process starts with Order
opening. The term is self-explanatory; it is the first step towards completing
the transaction. Order opening can happen live, when the person is online and
in front of the device called as Market order. If the order opening is planned
previously and set for a particular parameter for its execution wherein the
person does not need to be in front of the device is called Pending Order. The
pending order gets executed when the price reaches the desired price
level.
The Market orders opens positions in current time, while the
pending order opens positions when certain conditions are set. The conditions could be Buy Limit, Buy Stop,
Sell Limit or Sell stop.
The importance of forex technical analysis is especially
seen in the pending order, as the order is placed based on what you forecast
over a period of time. If the forex technical analysis is well studied and
understood, the chances of making a good transaction is high. The importance of
the forex brokers comes in during the actual execution of the order; the online forex broker helps in reducing
the chance of slippage.
The process of trading is not complete without the closure
of the order. Closing order again can be completed either by Stop Loss or Take
Profit. Stop loss is as the term suggests a step taken to close the order when
the trade is moving towards unprofitable positions. The stop loss happens
immediately and automatically, without the requirement of the trader being
physically available in front of the computer. The Take Profit step is given to
complete the order when a particular price level is reached. Here again, the
setting of the Take profit based on the forex technical analysis and an ability
to predict the movement of the market.
The Take profit is a limiting order which occurs automatically and as in
the Stop Loss, there is no requirement for the trader to be available in front
of the system.
As the quote goes "something that is open can only be closed",
similarly only open market orders or pending orders can be closed. The Stop
loss order is immediate order closure execution. As soon as the orders are
closed, the account history will be updated with the last available order open
as well as closed.
As is the basis of the complete online forex trading
process, the forex technical analysis is very important to decide the order
opening as well as the order closing, the right prediction of the market along
with efficient forex broker will invariable help in making a
profit utilizing the trading process.