Opening a new forex position
In order to start trading on Forex, you should open a position. This action is performed in the
trader’s trading terminal and, despite its simplicity, raises many questions among novice traders.
After all, you should not only open a position, but also choose the right direction of the transaction and set all the relevant parameters for the future order.
Opening a Forex position consists of the following stages: choosing a currency pair, trading volume, setting stop loss and take profit, type of order and direction of the transaction itself.
It is advisable to enter all settings immediately, especially for the value of stop orders.
In addition, before opening each new order, you should assess the current situation on the market in order to choose the right direction for a future transaction and the optimal time for its existence.
Instructions - how to open a Forex position.
1. Beginning – first of all, you should open a window in the trader’s trading terminal in which you enter data for a new order. This can be done in several ways.
Click “Service” on the top panel and select “New Order” from the submenu that opens.
Just click on the “New Order” button, it is located at the top of the trading terminal.
2. Selecting a currency pair - everything is clear here, we simply select the currencies for which the future transaction will be opened.
3. Volume – here you enter the volume of the transaction being performed, any terminal has a list of recommended volumes – 0.1-0.2-0.5-1.00, etc., but you can also enter your own value, for example 0.15 . Please note that each broker has minimum and maximum parameters for this value. In addition, you must choose the optimal volume in relation to the amount of your deposit; read more about this in the article “ Forex transaction volume ”.
4. Order type - you can open a Forex position in real time or plan the price upon reaching which this action will occur, in other words, place a pending order.
If you have chosen immediate execution, you can immediately proceed to entering other parameters; if you place a pending order, you will also need to select its type. Trading with pending orders has a number of features; a detailed description of them can be found at this link - Placing pending orders .
5. Stop loss - this order reduces your losses from unprofitable trades, that is, it makes it possible to automatically close a position when a specified price is reached. Typically, stop loss is calculated in points from the opening price; its size depends on many parameters - time frame, features of the trend movement. how to set a stop loss at this link.
6. Take profit - set if you plan in advance to set the level of profitability of your future transaction and do not have the ability to control the state of the open order. Choosing the correct value of this order is not as simple as it seems at first glance; to do this, you need to evaluate the dynamics of the trend and the planned duration of the transaction.
7. Direction of the transaction - depending on the prevailing trend, open a buy or sell deal by pressing the corresponding buy and sell keys.
That's it, the order is open, at the bottom of the trading terminal you can see the financial result of the current transaction, it is immediately negative by the size of the broker's spread. In order to close a position, you just need to right-click on the desired order to open the control window or left-click and select close order.