A day-trade is a trading deal on the Forex market that renews automatically every night (usually at 2200 Greenwich Mean Time).
Suppose you decide to open a trade to buy a USD/EUR pair. This will probably be because you believe that the USD is low in terms of the Euro and will rise. So you make your trade. If the USD does rise to the level you believe it will, you will close the deal. You will get more Euros for your USD than you originally "bought", so you make a profit.
You MUST set a "stop-loss" rate - that is, specify the exchange rate at which your trade would close automatically if you were wrong and the USD actually fell instead of rising. In this case you would lose your "margin" - the amount you had invested, e.g. $100 - but that is all you would lose.
But with Easy-Forex, uniquely, you can also set a "Freeze" rate! This gives you "thinking" time. Without this, if you hesitate while deciding whether to accept a trade or not, the rate could change in the meantime. Never forget how volatile currency rates are.
If you accept the trade, you are now holding an "open" position. It stays open until one of the following happens:
- You manually terminate the trade.
- It reaches your stop-loss rate.
- It reaches the deal-end date.
As long as it stays open, it is charged a renewal fee every night.
With Easy-Forex you can also set up a "Limit Order" to reserve a day-trading deal. It sets up a trade if and when the conditions you specify occur in the market. So you can get on with other things, and even go on holiday, knowing you are not missing a trading opportunity. Easy-Forex is unique in not charging for this!
Day-trading is the most common type of trade. Easy-Forex's unique features give you the best opportunity for profitable trading.
There's lots more to find out at http://www.bizwrite.co.uk/Forex/forexindex.html
No comments:
Post a Comment