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
Risk Warning: Trading Forex is highly speculative and carries a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone so before deciding to trade Company’s Products you should carefully consider your financial condition and your level of experience. Seek for independent advice if necessary. Speculate only with funds that you can afford to lose.
Risk disclosure: Forex trading involves significant risk. We strongly advise that you read our Terms & Conditions. Although the risk when trading Forex is fixed for each individual trade, the trades are live and it is possible to lose your initial investment, particularly if a trader chooses to place his entire investment to a single live trade. It is highly recommended that traders choose a proper money management strategy which limits the total consecutive trades or total outstanding investment.
Disclaimer: MyCapital is an online trading platform provider. We are an industry leading Forex broker by offering to our investors the ability to trade underlying assets on an accurate and state of the art Forex options trading platform. MyCapital advises its clients to read our terms and conditions carefully before opening positions on our platform. Digital options quotes displayed on our platform are rates that the company is prepared to offer options at, and as a result, may not necessarily correspond to the exact live market quotations. Trading MyCapital contains risks, which may result in partial or full loss of an investment. There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. The Company is not responsible for communication failures or delays when trading via the Internet. Any opinions, news, research, analyses, or other information contained on this website are provided as general market commentary and do not constitute investment advice. The Company is not liable for any loss or damage, including and without limitation to, any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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