Now look at the useful trading tools to a certain extent, protect you from unexpected losses and to fix the planned profit.
This is - STOP and LIMIT. In the previously opened position at any time (during working hours of the market) you can put an indication to close it when the price reaches a specific value of the currency. For example, you open a position, hoping that the quotes will go up (on schedule). At the same time to protect yourself from significant losses by a significant movement of the currency down, especially in a situation where you have no control over, or you can lose control of the market, you bet STOP, ie specify the value price below its current value at which your position should be closed without further instruction. Similarly, if you are open down, you specify how much above its current value. In this case you should keep in mind that if a STOP will be too close to the current value, then the random bounce rates can close with a loss of open positions right, and if too far away - losses can be unreasonably high. In turn LIMIT - this is referred to your quote above which the position will be closed at a profit, ie quote by LIMIT - is always higher than the current value, if you're up, and below - if you're down.
There is a very common mistake that almost all new traders. We must always remember to quote what - BID or ASK to be executed the warrant. Consider the example of the position BUY. As mentioned above, opened in BUY position ASK, and closed with a BID. Ie STOP or LIMIT will be executed only when the instructions reach the BID price. Since ASK in the graph is always higher than BID, then the graph is always HIGH ASK, and LOW - BID. Therefore, the graph should go LIMIT + spread before LIMIT will be executed. A STOP will most likely be executed as soon as the schedule will affect the price. As a rule, new traders are surprised when they discover that their LIMIT does not work, despite the fact that the HIGH graphics on a few points higher than the price LIMIT'a. So it should be, because HIGH should be higher than the LIMIT is less than the value spread.
This is - STOP and LIMIT. In the previously opened position at any time (during working hours of the market) you can put an indication to close it when the price reaches a specific value of the currency. For example, you open a position, hoping that the quotes will go up (on schedule). At the same time to protect yourself from significant losses by a significant movement of the currency down, especially in a situation where you have no control over, or you can lose control of the market, you bet STOP, ie specify the value price below its current value at which your position should be closed without further instruction. Similarly, if you are open down, you specify how much above its current value. In this case you should keep in mind that if a STOP will be too close to the current value, then the random bounce rates can close with a loss of open positions right, and if too far away - losses can be unreasonably high. In turn LIMIT - this is referred to your quote above which the position will be closed at a profit, ie quote by LIMIT - is always higher than the current value, if you're up, and below - if you're down.
There is a very common mistake that almost all new traders. We must always remember to quote what - BID or ASK to be executed the warrant. Consider the example of the position BUY. As mentioned above, opened in BUY position ASK, and closed with a BID. Ie STOP or LIMIT will be executed only when the instructions reach the BID price. Since ASK in the graph is always higher than BID, then the graph is always HIGH ASK, and LOW - BID. Therefore, the graph should go LIMIT + spread before LIMIT will be executed. A STOP will most likely be executed as soon as the schedule will affect the price. As a rule, new traders are surprised when they discover that their LIMIT does not work, despite the fact that the HIGH graphics on a few points higher than the price LIMIT'a. So it should be, because HIGH should be higher than the LIMIT is less than the value spread.
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