Opening profitable Forex trades
Forex transactions are carried out in two directions – buying or selling. The choice of direction depends on whether the exchange rate of the currency pair is rising or falling.
The actual trading technique is quite simple and takes just a few clicks. To begin trading, simply open an account with a dealing center .
After this, you can proceed directly to installing the necessary software and preparing for the operation itself.
Technical issues rarely raise questions for beginning traders, but choosing the direction of trades and developing trading tactics always raises a lot of questions.
Forex transactions are concluded using a special trader terminal , which is where orders are placed.
This terminal is downloaded directly from the selected broker, as each program already has the necessary pre-configuration.
Now the terminal is installed, you can proceed directly to making a Forex transaction.
This is done using special orders, which can be executed instantly or be pending and triggered when certain conditions arise.
When placing an order with instant execution, the following is indicated:
Trade volume is the amount of currency in lots. One lot equals 100,000 units of the base currency. Trades can be opened in whole lots or fractional lots of 0.1, 0.2, or 0.5.
Execution is instant. This refers not to the order execution speed, but to the timeframe—that is, to execute the order immediately or to place a pending order, taking into account additional parameters.
Stop levels are the stop-loss and take-profit values at which the order will be automatically closed, meaning you set the potential loss or profit level in advance.
Direction the base currency of the currency pair will be bought or sold .
To place a pending order, you'll also need to specify the level at which it will be triggered. Read more about pending orders here: http://time-forex.com/praktika/vystavlenie-otlozhennykh-orderov
The key point when concluding transactions on Forex is the choice of the direction of the operation, the basis for the decision in most cases is the prevailing trend.
Based on this, it is assumed that if the price of a currency pair will only rise in the near future, a purchase transaction is made; if a price decline is predicted, a sale is made.
Determining the direction of a trend - http://time-forex.com/tehanaliz/kak-opredelit-trend is the main task of any trader, and profit depends on how well he copes with it.
Forex trades can be short-term, medium-term, or long-term. Short-term trades typically mean the position will be closed within 24 hours.
This trading option is simpler and doesn't require long-term forecasting. However, you still need to determine the direction of the existing trend, calculate the size of the correction, and find the best entry point.
To conduct medium-term and long-term Forex transactions, you should first make a price movement forecast based on data obtained during a fundamental and technical analysis of the situation on the currency market.
