Forex market which is the most popular market in the financial world does not have a physical position or central exchange and trades 24-h among a wide network of banks, companies, and individuals. Currencies prices are always moving, changing against each other, offering different trading possibilities.
At MyCapital, you can take a long or short position, depending on how you think the fluctuation of a currency will be.
1. Decide a currency pair
Choose which currency you would like to trade. This is an important step that will affect future trade. So you should see the choice between 65 currency pairs as fundamental.
MyCapital’s technical and fundamental research instruments can assist you to recognize opportunities for trade that are appropriate with your strategy. We suggest that you take some time to understand whats fluctuation of your currency pair, so you will understand the risk related to your trade.
5. Monitor and close your trade
When you open your trade, the profit and loss will fluctuate with each transit in the market price. You can follow market prices, see your unrealized profit/loss update in real time, attach orders to open positions and add new trades or close existing trades from your PC or mobile app on your smartphone.
6. Closing your trade
It is logical that closing your trade must be the opposite of the opening process. If you have bought 3 Contracts of difference to open positions now you have to sell three CFDs to close them. Your account balance will instantly reflect the balance between cash profit and loss.
4. Adding orders
An order is an instruction to automatically trade at a point in the future when prices reach a specific level predetermined by you. You can use stop and limit orders to help ensure that you lock in any profits and minimize your risk when your respective profit or loss risk targets are reached.
While not necessary, given the volatility in Forex markets using and understanding risk management tools such as stop-loss orders is essential.
A stop-loss order is a guidance to close out a trade at a price worse than the current market level and, as the name suggests, is used to help reduce losses. There are two types of stop-loss orders - standard and guaranteed.
Stop and limit orders
3. Choose between buying or selling
So you have identified a market, you need to know the current price it is trading at, which you can do by bringing up an order ticket in the platform. All FX is quoted in terms of one currency versus another. Each currency pair owns a ‘base’ currency and a ‘quote’ coin. The base currency is the currency on the left of the currency pair and the quote currency is on the right. Said in a simple way, when trading foreign currencies, you should:
Your profits will grow in line with every increase in the exchange price.
Every fall in the exchange price below your open level will net you a loss.
Your profits will rise in line with each point the exchange price falls.
Every increase in the exchange price above your open level will net you a loss.
Spread - FX pairs have two prices.
2. Choose the type of the FX trade that you will operate with
MyCapital offers 3 ways of trading FX: Index Spread Betting, CFD or Forex Trading. Each has its particular stake size:
FX Trade steps
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