Some questions I have
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Thread: Some questions I have

  1. #1
    Hello everyone. I've a lot of rookie inquiries and hope you can help me out. I do have a few advanced questions too.

    I forgot a few of the questions so I will add them when I remember them.

    Thanks.

    1) When I move long EUR/USD (using a USD account) im changing my USD into EURs but am I buying 100k units (1 lot) of EUR or selling 100k (1 lot) units of USD? If its buying EUR does this mean that I need to have (for instance, rate is 1.07 about the EUR/USD) 1.07 x 100k = 107k USD to convert to 100k units of EURs?

    2) Im going to pick a random broker for stats to the next few questions. Activtrades: https://www.activtrades.com/index.as...=forex_margins. If margin is 0.25%, does this mean that when I start a 1 lot order I must place 0.25% of the value of this order? So a $100k order will be $250 from me and $99,750 from the broker? At 0.5% its own $ 500 from me and $99,500 from the broker? ect.

    3) Ongoing from query two, tradeout level. It says 30%, does that imply 30 percent of the $100k or 30 percent of $250? Does this also mean that when trading 1 lot that I could lose a maximum of 700 pipettes before I get tradedout?

    4) Leverage. If I have an account with $1000 and start a 1 lot trade does this utilize all of my cash and adds $99k from the broker giving me a 100:1 leverage or is it a predetermined sum all the time. Like when I ask for 200:1 I will consistently get 200:1 on all of my transactions, meaning that I set $500 every trade for 1 lot?

    5) When somebody hedges a trade, when do they start the contrary order? Right after the trade goes against you? When do you escape? If you have the TP of this Dollar trade precisely the exact same place since the SL of the chief trade?

  2. #2
    Ok I just finished reading it. It answered part of 4 , and 1,2,3. Can you describe on the hedging part? I tried looking it up but I receive explanations about it but not illuions with numbers. Thanks.

  3. #3
    Quote Originally Posted by ;
    When someone hedges a transaction, when do they open the contrary order? Right after the trade goes against you?
    No.Trader hedges mostly in two cases: 1). When he would like to repair profit and two. When he would like to avoid losses.
    In both cases, the opposite order is opened at reaching a certain price level.

    Quote Originally Posted by ;
    When do you get out? Should one have the TP of the Dollar trade the exact same place since the SL of the main trade?
    No. In general, the use of TP and SL at a hedge is highly undesirable. A trader must leave the hedge .

    Please be aware that trading is one of the most sophistied tips when trading FX. Necessarily require to master it onto a demo account before using it on a live account.

  4. #4
    Quote Originally Posted by ;
    quote No.Trader hedges mostly in 2 instances: 1. When he would like to repair profit and two. When he would like to avoid losses. In both scenarios, the reverse order is started at attaining a certain price level. quote No. Generally, the usage of TP and SL at a hedge is highly undesirable. A trader should depart the Dollar manually. Please note that trading is among the most sophistied tricks when trading forex. Necessarily require to master it onto a demo account before using it on a live account.
    Ok thanks for the response. This assists. I can practice a lot more then. Thanks again.

  5. #5
    Quote Originally Posted by ;
    Hello everybody. I've a lot of rookie inquiries and hope you all can help me out. I do have questions advanced . I forgot a few of the questions so I'll include them when I remember them. Thanks. 1) When I go long EUR/USD (with a USD account) im changing my USD into EURs but am I buying 100k units (1 lot) of EUR or selling 100k (1 lot) units of USD? If its buying EUR does that mean I need to have (for example, rate is 1.07 on the EUR/USD) 1.07 x 100k = 107k USD to convert to 100k units of EURs? 2) will select a random broker...
    have little advise, buy or read a books for example Foreign Exchange for dummy. You'll get lot of your response.

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