FOREX

HOW TO TRADE FOREX

In order to start trading Forex, you have to register a live trading account with FxCitizen. Then with your fund allocated, Forex- an online trade, is conducted by executing orders available in our MT4 platform. There are some basic types of order that are used in Forex trading.

  • Instant Order / Market Order
    Instant order is the simplest type of order in Forex. It is an order to buy or sell a currency pair at the immediate price. A trade position is opened automatically after this order is executed.
  • Pending Order / Limit Order
    • Buy limit
      buy order is executed automatically once the “Ask” price is equivalent or lower to the pre-defined value.
    • Buy Stop
      buy order is executed automatically once “Ask” price is equivalent or higher to the pre-defined value. If Price Gap happens, the first incoming price will be executed as [started/gap]
    • Sell limit
      sell order is executed automatically once “Bid” price is equivalent or higher to the pre-defined value.
    • Sell Stop
      sell order is executed automatically once “Bid” price is equivalent or lower to the pre-defined value. If Price Gap happens, the first incoming price will be executed as [started/gap]
  • Stop Loss (S/L) Order
    A stop-loss order is an order that is set on an open position to prevent losses if the price goes against the prediction. Once the price reaches this level, the position will be automatically closed instantly. Stop-loss order will remain in effect until the price reaches the order that is set or the order is cancelled. If Price Gap happens, the first incoming price will be executed as [sl/gap]
  • Trailing Stop
    Trailing stop is another order that intends to protect profits automatically and it is set on an open position. It is entered with a stop parameter that creates a moving or trailing activation price. This parameter is entered as an actual specific amount of rise (or fall) in the security price. In other words, a stop loss order of example 50 pips from the real price will be triggered and follows the price as it is profiting for a parameter of 50 pips set. However, the stop loss order will be unchanged if profitability of the position falls and thus, it will reach the stop loss order and close the position to secure current profit.
  • Take-Profit (T/P) Order
    Take-profit works inversely with the stop loss order as it is an order that automatically closes position once it reaches a certain level of profit. Take-profit order will remain in effect until the price reaches the order that is set or the order is cancelled. It can be set to open position and pending order.