Let’s face it. The forex market will always do what it wants and move the manner it desires. Each day comes with a new challenge in forex trading.
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Anything from global politics, central bank rumors, and significant economic events can turn in a flash the currency prices than you can snap fingers.
Therefore, it means that you will take a position eventually on the worst side of the market move.
4
Payment methods
Trading platforms
Regulated by
Support
Min.Deposit
Leverage max
Currency Pairs
Classification
Mobile App
Min.Deposit
$100
Spread min.
Variables pips
Leverage max
100
Currency Pairs
40
Trading platforms
Funding Methods
Regulated by
FCA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
0.3
EUR/CHF
0.2
GBP/USD
0.0
GBP/JPY
0.1
GBP/CHF
0.3
USD/JPY
0.0
USD/CHF
0.2
CHF/JPY
0.3
Additional Fee
Continuous rate
Variables
Conversión
Variables pips
Regulation
Yes
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$100
Spread min.
- pips
Leverage max
400
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
1
EUR/USD
0.9
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
Yes
CYSEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
Yes
CBFSAI
Yes
BVIFSC
Yes
FSCA
Yes
FSA
Yes
FFAJ
Yes
ADGM
Yes
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$10
Spread min.
- pips
Leverage max
10
Currency Pairs
60
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Cryptocurrencies
Average spread
EUR/GBP
1
EUR/USD
1
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
Your capital is at risk.
Min.Deposit
$50
Spread min.
- pips
Leverage max
500
Currency Pairs
40
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Actions
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
-
EUR/CHF
-
GBP/USD
-
GBP/JPY
-
GBP/CHF
-
USD/JPY
-
USD/CHF
-
CHF/JPY
-
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
However, stop orders can be used to save you a lot of losses as use them for trade entries as well as exits.
But how good do you understand the stops?
Entry Stops
Forex trading is open 24 hours, and a trader may not keep the eyes open all the time. Therefore, entry orders come to play.
An entry order allows setting a price to buy or sell a given currency ahead of time and executed only when the set price is hit.
A stop order is triggered in situations whereby an upward breakout of a price is above the resistance or when a downside breakout of the price is below the support level.
So, how is an Entry Stop Applied?
Breakouts are indicators of a move towards the break occurring. Therefore, as a trader, you’ll have to identify the resistance as well as the support correctly.
Traders should look at the wedges, triangles, or necklines in chart patterns for support and resistance lines.
The price bar has to breach above the resistance break or below the support break for a breakout to occur, but if it merely infringes but doesn’t close either of them, then the breakout hasn’t happened. You should always confirm a break to set the entry stop.
Exit Stops
An exit stops simply an order to exit a trade at the stop price. An exit stop is used to protect the gains already acquired but not realized yet. In such scenarios, the exit stop is trailing.
Also, exit stops can be used in safeguarding further loss when a trade is in the losing position. In such a scenario, the exit lose is a protective stop.
Like entry stops, setting good exit stops is essential to limit the risks of losing capital as well as profits.
They shouldn’t be made too loose to give up a lot to the market, or tight enough to lose on good profit.
Setting Protective Stops
Always a protective stop comes before trade entry. The reward sort after is the primary consideration for the risk taken.
For instance, if you realize that where you decide to place your protective stop, the profit as a reward will be 3-times less the protective stop distance, then rather not take the trade.
Also, resistance and support levels are significant in setting protective stops. When going long on an asset with a define line support, consider the stop below the support level.
However, if it’s short on a given currency pair, consider the stop above the resistance trend line.
Setting Trailing Stops
They are used in chasing advancing prices that already have attained profits. They protect against price reversals occurring at any time without being foreseen.
For instance, when there’s down-trending price action and that the broken support will eventually become a resistance, then a trader can put a trailing stop above a market price.
Besides, other methods that can be used to set a trailing stop are like the percentage gain, intrinsic Volatility, and Parabolic SAR indicator.
Setting a Money Stop
In this scenario, it assumes that the trader knows how money he’s willing to lose while pursuing some gain. The technical analysis doesn’t come into play in this case; hence, putting some risk. Therefore, technical stops produce much better money management results than money stops.
Can you change the stop orders?
One thing for sure, stops are meant to protect your capital. Therefore, adjusting stops, especially protective stops, is not the best practice.
A stop should be kept intact to inculcate the trading discipline as well as keep your risk level stable.
Adjusting the stop can negate the 3-times principle of reward-risk ratio and maybe equal the risk with the reward.
However, in the case of trailing stops, adjusting is possible as there’s no possibility of a loss.
What can happen is only smaller profits than expected. Therefore, you can adjust the trailing stop but in the direction of trailing price.
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The Bottom Line
Becoming a professional forex trader, one must vividly understand the true meaning of stops in the market. After all, they help save capital as well as not to lose the already gained profits.
Remember to avoid placing stops too close to entry price to avoid trades being stopped too soon.