A stop-loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against a trader's position.
Exit target level is a price level at which you want to close your position, when you reach certain profit. You can set the exit target level when you open your position or at any time while the position is open.
Stop-loss & target
A stop-loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against a trader's position. Exit target level is a price level at which you want to close your position, when you reach certain profit. You can set the exit target level when you open your position or at any time while the position is open.
Limit & stop
Initiating a trade with a stop order means that you will only open a position if the market moves in the direction you are anticipating. A limit order is an order to buy below the current price, or sell above the current price.
Long & short
Long (buy then sell) position and short (sell then buy) position are
a long position is simply one in which a trader buys a market instrument at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market. A short position is one in which the trader sells a market instrument in anticipation that it will depreciate. In this scenario, the trader benefits from a declining market.
GTC, GTD, IOC
GTC (Good Till Cancelled) order will stay in the market until you cancel it and it is the default order duration type. GTD (Good Till Date) will stay in the market until a date you specify, and IOC (Immediate Or Cancel) order will be executed immediately (if other order conditions are met) or cancelled.
Full & partial
There is currently no difference if you select full of partial quantity type in your [Send Order] dialog. That field is intended for other asset classes and is not in use for currently available instruments. Please disregard it at this moment.
You can specify any position size in our trading system, as we don't have strict quantity specifications. For example, you can specify
1, 3, 7, 23, 154, 837, 3497, 10000, 100000 or any other quantity when you send an entry order.
Point or pips value
Point or pips is the smallest change in a market instrument's price. If a price changed from 1.2000 to 1.2001 or from 201.10 to 201.11, it changed for 1 point. Point value depends on your position size.
The objective of trading is to buy a market instrument and later sell the same market instrument for a higher price. In case of margin trading, trader can also sell a market instrument first and later buy the same market instrument for a lower price. Either way, trader has to close position in order to lock in the profit.
Let us assume that you open a long position by buying a market instrument for 129.38 (quantity of 10000) and few hours after that, you close the position by selling it for 129.52 (same quantity of 10000). These two trades would bring you profit of (129.52 - 129.38) * 10000 = 1400.
We can also say that these two trades would bring you 14 "points" profit. A "point" is the smallest increment in an instrument's price. For the instrument in the above example, one point is 0.01 and for an instrument denominated with 4 decimals, one point would be 0.0001. Expressing position profits in points is often very useful for quick calculations and estimates.
One point, from the example position above, would bring you 0.01 * 10000 = 100 profit, denominated in the same currency the market instrument is denominated in.
In case of Forex, currency pair denomination will be in the counter currency (JPY is the counter or quote currency in the USD/JPY pair) and you may need additional currency conversion to get profit calculated in the currency your trading account is denominated in.
Goal in trading
Your goal in trading is to buy at a lower price and sell afterwards for a higher price. For example you can buy a market instrument (quantity of 10000) for 1.2349 and sell it later for 1.2458. You will make a profit of 109 (in currency the instrument is denominated in).
The limit order and the stop-loss order are the most common risk management tools in trading. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop-loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against a trader's position.
Market prices always move in point increments. It is often for 1 point, but very frequently the price moves can be for 2, 3, 5 or more points. When markets are volatile (e.g. week openings, news announcements, significant events) instrument prices can move 50 points or more in just one single jump, which can greatly affect execution of your orders. For example, if a price jumps from 200.10 to 200.50 (in just one 40 points move) and your short position's stop-loss was at 200.20, your position would be closed at the current market price of 200.50, which is 30 points worse than your stop-loss level. On the other hand, if your long position's exit target was at 200.20, your position would again be closed at the current market price of 200.50, which is 30 points better than your exit target level.
Position kept open
As a general rule, a position is kept open until one of the following occurs
1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.
Strategy should use
Traders make decisions using business reports, economic fundamentals, technical factors and other relevant information. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, business reports, government-issued indicators and reports, and even rumors. The most dramatic price movements, however, occur when unexpected events happen. The event can range from a central bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.
Times to trade live
You can trade from Sunday 17:00 to Friday 17:00 New York local time. Virtual trading is open at all times. Please visit http://www.timeanddate.com/worldclock/city.html?n=179 to check New York local time. The following approximate market schedule is based on New York local time
Japan markets open at 19:00 followed by Singapore and Hong Kong that open at 21:00. European markets open in Frankfurt at 2:00, while London opens an hour later. New York markets open at 8:00 (NYSE opens at 9:00). European markets close at 12:00 and Australian markets start again at 18:00.
Spreads between bid and offer (ask) prices are variable. Price spreads often unexpectedly change and greatly increase during weekends, in after-hours trading, in case of market-related announcements or market turmoil.
You can see the list of top traders on our virtual trading desks, who took part in the Marketiva Masters tournament, at marketiva masters page and see how successful they are. You can compete in the tournament by just trading on your virtual trading desk.