Features of a Forex Order4 Minutos De Lectura

What are the characteristics of a Forex order? For a person to start investing in Forex or any other financial market, the basic concepts and, most importantly, the buy and sell order must be clear.

Once you have these concepts clear, you can start with the study of the fundamental technical analysis, start practicing the operational methods, etc. But if from the beginning you don't know the basic concepts of a contract, you will have heavy losses not because of the operation, but because of the lack of basic knowledge.

Characteristics of a Forex order.

1. The currency pair: when investing, we must be very attentive to the currency pair that we are about to trade, whether for sale or purchase. We should also be clear, as reading the example of currency pairs: GBP, JPY, EUR, CHF, etc.

2. Instant execution: This is a type of order that is used to open instantly as the word itself says. It is used to invest the moment we see a change in trend, a confirmation by technical analysis or simply enter the volatility of a key news item.

3. Pending order: this type of order is used when we want to invest at a different bid or ask price than the current price. It is used when we do not have time to be in front of the PC. There are two types of pending orders, ( Buy Limit, Buy Stop, Sell Limit and Sell Stop ).

4. Volume: It is the lot that we will invest and this will depend on the leverage of 1: 100, 1: 200, 1: 300 or the one that we contracted with the Brokerage House. The volume of an operation can be micro, mini and lot and the trader or the investor can fractionate the volume, that is, make an operation with the combination of micro, mini and lot for example invest with a volume of , 0.36, 1.15, 0.60, 0.13 ... etc.

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5. Contract value: The contract is volume-related, i.e. the value of a volume of a lot (1) is 100,000 units, the contract value of a volume of a mini lot is 10,000 units and the contract value of a volume of a micro lot is 1,000 units and just as the volume can be fractioned.

6. Margin: is the amount of capital that the brokerage house will "block" so that it can open different trading volumes and that this maintained capital depends on the leverage they have contracted with the brokerage house, which is important to note that, if you don't like at least, the margin cannot open the volume above the margin.

7. Spread: It's the difference of the buy price minus the sell price, and this will make the commission that the broker will charge each time it opens a trade to sell or buy. This Spread can be fixed or floating, but will also depend on the package contracted with the broker.

8. PIP Value : Percent in point, is the decimal value that all currency pairs have when they increase or decrease their value in the market, and this will add money if we enter the profits or lose money if we lose our trade. Normally the pip of a currency pair is at the fourth or third digit after the point, but this can vary depending on the currency pair.

9. Daily Swap: is a charge or payment by the Brokerage House to hold an open position to buy or sell on any currency pair and this will depend primarily on the interest rate that is held in each country according to the currency. and subsequently it will depend on buying or selling on any pair.

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10. Sell: Is the operation of selling the base currency in exchange for a quantity of units of the quoted currency, this operation is executed when the graph of the currency pair starts to decrease and obtain minimum values.

11. Buy: Is the operation of buying the base currency in exchange for a number of units of the quoted currency, this operation is executed when the chart of the currency pair starts to increase and obtain maximum values.

12. Stop Loss: The value we set to close in case our operation does not go well and when setting the SL closes automatically.

13. Take Profit: The target value at which you close the operation automatically when you get there.

14. Trailing Stop: Makes the stop loss adjust according to the positive movement of our position.

15. Although it is still necessary to go deeper into some of the 14 concepts explained, it is the minimum that a person who is going to start investing in the Forex market should know.

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