Stop Loss is meant for minimizing loss, in case the price of the financial instrument starts to move in the unprofitable direction. If the price reaches an indicated level, the order is closed automatically. Take Profit is designed to fix the profit at the moment when the price reaches the predicted level. The execution of this condition also leads to the automatic fixing of profit. When opening an order to sell, Take Profit must be lower than the level of the current price, whereas Stop Loss must be higher.

When opening an order to buy, Stop Loss is set at a level that is lower than the current price, whereas Take Profit is set at a higher level. Take profit and Stop Loss execution occurs just like the execution of pending stop and limit orders. Take profit is a limit order and Stop Loss is a stop order. As it has already been said, Take Profit and Stop Loss can be set only when modifying the order which is already open.

Close by market is necessary when you want to close the order immediately. To close by market, you must double click on the order in the "Terminal" — "Trade" window or right-click on it and choose "Close order". In the appeared window click "Close". An order can also be closed in one click. Just click "x" in the "Profit" column in the line of the necessary order.

After clicking, results of the trade will appear in the "Terminal" — "Account history" window. All the information on all closed orders is kept there.

In case you have not found all the answers to the questions that you might have, FAQ and the JustMarkets support team are there at your disposal. To see how everything described in the article works, you can open a practice account.

If you feel that you are ready to start chasing profit, open a live account and start earning. by JustMarkets , This article was co-authored by Marcus Raiyat.

Marcus Raiyat is a U. With nearly 10 years of experience, Marcus is well versed in actively trading forex, stocks, and crypto, and specializes in CFD trading, portfolio management, and quantitative analysis.

Marcus holds a BS in Mathematics from Aston University. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article has been viewed 1,, times. Trading foreign exchange on the currency market, also called trading forex, can be a thrilling hobby and a great source of income.

You can trade forex online in multiple ways. To trade forex, choose a brokerage that is regulated by a major oversight body like National Futures Association NFA or Financial Conduct Authority FCA and open an account. Read and analyze international economic reports, then choose a currency you feel is economically sound to trade with, like the US dollar or Euro. Start placing orders through your broker based on your research findings, then watch your account to monitor your profits and losses.

To learn how to analyze the market and set your trade margins, keep reading! Did this summary help you? Yes No. Log in Social login does not work in incognito and private browsers. Please log in with your username or email to continue. wikiHow Account. No account yet? Create an account. Courses Tech Help Pro About Us Random Article. Quizzes Contribute Train Your Brain Game Improve Your English. Popular Categories. Arts and Entertainment Artwork Books Movies. Computers and Electronics Computers Phone Skills Technology Hacks.

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By using our site, you agree to our cookie policy. Cookie Settings. wikiHow is where trusted research and expert knowledge come together. Learn why people trust wikiHow. Categories Finance and Business Investments and Trading Foreign Exchange Market How to Trade Forex.

Download Article Explore this Article parts. Tips and Warnings. Things You'll Need. Related Articles. Article Summary. Co-authored by Marcus Raiyat Last Updated: July 25, References Approved. Part 1. Understand basic forex terminology. The type of currency you are spending or getting rid of, is the base currency.

The currency that you are purchasing is called quote currency. In forex trading, you sell one currency to purchase another.

The exchange rate tells you how much you have to spend in quote currency to purchase base currency. A long position means that you want to buy the base currency and sell the quote currency. In our example above, you would want to sell U. dollars to purchase British pounds. A short position means that you want to buy quote currency and sell the base currency. In other words, you would sell British pounds and purchase U. The bid price is the price at which your broker is willing to buy base currency in exchange for quote currency.

The bid is the best price at which you are willing to sell your quote currency on the market. The ask price, or the offer price is the price at which your broker will sell base currency in exchange for quote currency. The ask price is the best available price at which you are willing to buy from the market. A spread is the difference between the bid price and the asking price. Read a forex quote. You'll see two numbers on a forex quote: the bid price on the left and the asking price on the right.

Decide what currency you want to buy and sell. Make predictions about the economy. If you believe that the U. Then you can fund the account with a payment through check, credit or debit card or wire transfer. At that point, you can trade currencies in the market. Once you have an account with a broker, you can download the brokers trading platform to your computer.

This trading platform will allow you to look at price charts with real-time pricing information on all of the major currency pairs. You can use indicators and other tools on the trading platform to aid in your trading decisions. Once you are ready to place an order, you can do so from your platform without contacting the broker. When you decide that you want to get into the market, you can place one of a few different types of orders. If you want to get into the market as quickly as possible, you can simply place a market order.

This fills your order at the price that is available in the market. You could also place a limit order that fills your order once the market gets to a certain point.

Luke Arthur has been writing professionally since on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in

Traders trade foreign currencies in hopes that they can profit from the changes in the exchange rate between the two currencies. In order to gain access to the Foreign Exchange market, commonly called FOREX, you have to open an account with a broker and begin trading. You also need a basic understanding of currency pairs and how to trade them. One of the most basic terms in the FOREX market is "currency pair. Currencies are paired with other currencies in standard pairs. The majority of traders in the market are institutional traders.

Institutional traders are exchange banks who exchange with other banks every day. This market is the single largest financial market in the world because of the size of the institutional traders involved. Individuals can also get involved by working with a FOREX broker. People trade this market from all over the world at all times.

Traders can access the market 24 hours a day five days per week. In order to trade the market, you have to have an account with a FOREX broker. FOREX brokers are situated all over the world and there is not a central agency that governs all of them. You can open an account by filling out a basic form and proving your identity.

Then you can fund the account with a payment through check, credit or debit card or wire transfer. At that point, you can trade currencies in the market.

Once you have an account with a broker, you can download the brokers trading platform to your computer. This trading platform will allow you to look at price charts with real-time pricing information on all of the major currency pairs.

You can use indicators and other tools on the trading platform to aid in your trading decisions. Once you are ready to place an order, you can do so from your platform without contacting the broker. When you decide that you want to get into the market, you can place one of a few different types of orders. If you want to get into the market as quickly as possible, you can simply place a market order.

This fills your order at the price that is available in the market. You could also place a limit order that fills your order once the market gets to a certain point. Luke Arthur has been writing professionally since on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in Arthur holds a Bachelor of Science in business from Missouri State University.

MANAGING YOUR MONEY. length { this. removeChild sources[0] ; } else { this. querySelectorAll 'source' ], arguments[0]. By Luke Arthur. Share It. References Nasdaq. Library of Congress. Securities and Exchange Commission, Office of Investor Education and Advocacy.

Securities and Exchange Commission.

For example, you can use the information contained in a trend line to identify breakouts or a change in trend for rising or declining prices. But it also offers more rewards to those who are willing to take the risk. Make predictions about the economy. As you perform and execute your trading plan on a live account, you will inevitably find faults. Trading currencies productively requires an understanding of economic fundamentals and indicators.

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