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Trade
Close trading position
Each operation is the result of the calculation of the currency speculator. This analysis is conducted at the market in order to open a position, there's nothing like turning their theoretical knowledge into practical results. As you know, any trading transaction depends not only on the choice of the point of entry into the market, but a successful exit from the position. It is theoretically possible to make a purchase at a very attractive price, but to sell the purchased net tool for not very much money.
In this article we will list the most effective options close trades on the Forex market, consider their pros and cons, pay attention to the fact, in any market situations, it is best to apply a particular method. The exit position is the final point of the transaction, which needs to be delivered as you need us.
Understanding the importance of a great closing of the transaction, lets look at the trading process a bit more versatile. Practice has shown that even when opening Forex new positions at random, people can still bring up the work to a positive final at the expense of completion of transactions at the most competitive prices available in each case.
The result of the trader on the market, this final summation of results of all positive and negative trades. It turns out that the qualitative indicator of our trading we can influence at least two ways:
• increase the profitability of our positions
• to reduce the loss ratio of our positions
In both cases we can talk about what the end result affects the method of determining entry point, and the principle of identification of closure points. It turns out that the importance of a successful commit of the transaction result in any case is difficult to overestimate. Generally, traders pay more attention to another part of the work, namely, the search entry point.
How to close Forex trades
The most common methods of closing include the following:
• fixed Stop Loss
• close position on reverse signal open trade
• upon the occurrence of certain market conditions
• the deal can be closed as a result of position tracking
the First option is most common among novice traders. In this case, choose a Stop Loss value that is used in the further work on the market. More experienced speculators put no Stop Loss at a fixed distance from the entry point, and calculated the optimal position Stop Loss for each position. In this case, the order is fixed, but it will be different in magnitude from other operations.
The second option is applied often in the trade, uses to open the operation indicators. In this case, the signal of the trading system, a person perceives as an order to act. Thus begins operation in the foreign exchange market. As soon as the system will give him a new signal opposite to the previous one, it can be interpreted as an order to close the position. As an example, it is possible to remember the middle two lines (MA) with different periods. As soon as the first curve crosses the other, it is a bargain. At reverse intersection of lines with each other the operation is completed.
The third option involves the use of various conditions limiting the duration of the operation. For example, it may be the work of traders fixing the result at the time of the transaction, it is possible that the closing of all positions takes place before the release of important news or the end of Friday trading session.
The quality of position tracking can be used a variety of tools in Forex. To this list can be attributed to the transfer Stop Loss to breakeven and use trailing stop, and more. The tool that has accompanied our deal in the process of its action on the market, and later became the reason for its closure, will be the fourth option of fixing the results.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 323
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