A-BEGINNERS-GUIDE-TO-FOREIGN-EXCHANGE-TRADING

More documents

Recommendations

Info

With this in mind, we can divide the amount ofequity risked by the stop-loss distance in pips:$200/25 = $8 per pip. The trader then must locatethe pip value of the EUR/USD to size the position,which we know from above.Using a 1 standard lot places the trader at a higherrisk bracket of $250 ($10 per pip * 25 pip stop loss =$250). Given this, we can simply size the positionusing 8 mini lots since they equate to a $1 pipmovement ($1 per pip [1 mini lot] * 8 = $8 per pip *25 pips = $200). There are additional steps involvedwhen your account currency is different from thequote currency, but this may be best suited foranother article.Risk parameters. Keep risk parameters to within a1-2% risk bracket. While it may be tempting to riskmore, this is a dangerous play.Don’t overtrade. Focus on only a few pairs to beginwith.
Trade using a demo account first. This will allow oneto become familiar with the platform’s features andtest strategies. However, while a demo account isbeneficial for the learning process, to trade themarkets successfully you must appreciate thepsychological demands trading imposes which isonly felt using a live account. Therefore, oncecomfortable with the trading platform features and astrategy, trading a small live account could be thenext step forward. With IC markets, you can open anaccount with as little as $200.[1] https://www.bis.org/statistics/rpfx19_fx.pdfhttp://bit.ly/2u9n7BoOpen an accountwith IC MarketsNow!SIGN UP!
Page 1 and 2: F O R E I G NE X C H A N G ET R A D
Page 3 and 4: The over-the-counter market, also k
Page 5 and 6: Financial Instrumentsin the FX Spac
Page 7 and 8: The Exchange RateAn exchange rate i
Page 9 and 10: Pip/PointA pip - a common term in t
Page 11 and 12: SpreadThe difference between the Bi
Page 13: Position sizing. While this is an a

A-BEGINNERS-GUIDE-TO-FOREIGN-EXCHANGE-TRADING

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?