Category Archives: Financial Markets

The Role of Stop-losses in Currency Trading

Currency Trading
Currency Trading

You will not find such a Forex trading participant who doesn’t know what a trading order is. When you use a stop-loss you can eliminate a lot of risks peculiar to the implementation of the currency trading operations at Forex market. It should be mentioned that a stop-loss determines a sum of money, which you are ready to put at risk opening each new position on the market.

There is still a great number of the traders who don’t want to place protective orders. Also, there are many Forex players who move the orders or cancel them at all if a price of a given currency reaches some point. These groups of the market participants take a high risk of losing the entire amount of money. But the traders with substantial trading experience understand the importance of the use of the stop-losses making currency exchange deals at Forex market. There is a number of the reasons, which explain the necessity to use the stop-losses in Forex trading.

You have to remember that it’s impossible to become a successful Forex trader if you can’t manage your assets. When you make an unfavorable deal, the sum of your losses has to be less or equal to 3% of the total sum of your deposit. If your losses exceed this percentage it means that you have to learn the principles of money management. Once you’ve learnt to place a stop-loss, you’ve learnt money management as well.

Only a market player who can make reasonable decisions is able to achieve a success on Forex market, which is very unstable marketplace. A reliable Forex broker should help its clients to understand that a system promotes a success at Forex market. It’s recommended to use different trading strategies. However it’s obligatory to use risk management in any situation. You manage possible risks when you issue a stop-loss. If you don’t issue protective orders, your trading system will not be perfect.

If you don’t want to leave Forex market before you become a successful trader, you must learn to handle financial risks. You have to create own algorithm of actions, which you should follow in order to minimize risks. You will not be able to control trading risks if you don’t place stop-losses. The correlation of risks which accompany trading activities and anticipated income must be not less than 1:1.

If you learn to manage risks on Forex market, the balance of your Forex account (learn more) will be positive.

A Perfect Guidance in Spreading Your Bread in the Market

Spread Betting Companies
Spreading Your Bread

A market where various types of financial instruments are traded is called financial market. The operation of this market is altogether different and is highly interesting. Usually the items that are dealt or traded in this market are known as financial instruments. These financial instruments include financial securities such as shares, debentures, stocks, bonds, agricultural papers and other valuable commodities such as gold. Usually a consideration in form of interest or dividen