Opening profitable trades on Forex
Transactions on Forex 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 transaction technique itself is quite simple and can be completed in just a few mouse clicks. To start trading, you just need to open an account at 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 among novice traders, but choosing the direction of transactions and developing trading tactics always raises a lot of questions.
Forex transactions are concluded using a special trader terminal , where orders are placed.
Such a terminal is downloaded directly from the selected broker, since each of the programs already has the necessary preliminary settings.
Now that the terminal is installed, you can now proceed directly to making a Forex transaction.
This happens with the help of special orders, which can have instant execution or be deferred and triggered when certain conditions arise.
When placing an order with instant execution, indicate:
Transaction volume – the amount of currency in lots. 1 lot is equal to 100,000 units of the base currency; you can open transactions in whole lots or in fractional ones of 0.1, 0.2, 0.5.
Execution is instant. In this case, what is meant is not the speed of order execution, but the timing, that is, execute the order right now or set a deferred version of it, taking into account additional parameters.
Stop levels – the value of stop loss and take profit at which the order will be automatically closed, that is, you set the possible level of loss or profit in advance
Direction – buy or sell. That is, whether the base currency of a currency pair .
To place a pending order, you will additionally need to indicate the level at which it will be triggered. Read more about pending orders here - http://time-forex.com/praktika/vystavlenie-otlozhennykh-orderov
The main point when concluding transactions on Forex is the choice of the direction of the operation; the basis of the decision in most cases is the prevailing trend.
Based on this, it is assumed that if in the near future the price of a currency pair only increases, a purchase transaction is made, and if the price is predicted to decrease, a sale is carried out.
Determining the direction of the trend - http://time-forex.com/tehanaliz/kak-opredelit-trend is the main task of any trader and making a profit depends on how he copes with it.
Forex transactions can be short-term, medium-term or long-term. Usually, when concluding short-term transactions, it is assumed that this position will be closed within one day.
This trading option is simpler and does not require making a forecast for a long time. But you still have to determine the direction of the existing trend, calculate the size of the correction and find the most successful entry point into the market.
To conduct medium-term and long-term Forex transactions, you must first make a forecast of price movements, which is based on data obtained during a fundamental and technical analysis of the situation on the foreign exchange market.