Dollar is trading at 69.8200 against it's opening at 69.8300.
Argentina Hikes Rate 500 Basis Points as Turkey Contagion Bites
Asia tries to find its footing after Turkish tremors
Gold stabilises as dollar pulls back from 13-month high
Indian rupee breaches 70/dlr mark as Turkey concerns persist
Sensex rises 177 points higher in opening trade with 18 components in the green; Nifty around 11,400
Tencent's shares slide after "Monster Hunter: World" gets axed in China
Turkish lira pulls back from a record low, but leaves global markets rattled
Turkish lira weakens slightly to 6.92 against dollar
Sri Lanka gets US military funding as China vies for influence
Trump signs defense policy bill with watered-down China measures
Oil prices edge up as Saudi cuts output, but looming demand slowdown drags
China's economy cools further, investment growth at record low
Proper foreign exchange risk management and hedging currency risk is essential when trading forex. Highly leveraged forex trading can lead to exponentially large gains or exponentially large losses. We want our clients to be successful and we have taken the time to make as much forex information available online as possible including foreign exchange risk management. Proper currency risk management starts with a general understanding of the :
The speed, volatility, and enormous size of the Forex market are unlike anything else in the financial world.
The Forex market behaves differently from other markets. Any currency can become very expensive or very cheap in relation to any or all other currencies in a matter of days, hours, or sometimes, in minutes.
The unpredictable nature of currencies is what attracts an investor to trade and invest in this market.
Beware: the Forex market cannot be controlled - no single event, individual, or factor rules it. However, just like any other speculative business, increased risk entails chances for a higher profits as well as higher losses.
When you terminated, closed or exited your position, had you understood the risks and taken steps to avoid them?
Truly ask yourself: "How much am I ready to lose?"
The following may come up in your day-to-day foreign exchange transactions.
Traders must have a working knowledge of currency risk management tools available to each and every MBCFX client. First, learn how to properly manage forex market risk utilizing different order types such as stop and limit orders to protect yourself against adverse foreign exchange price moves. Learning to use the orders in combination can improve your foreign exchange trading technique by allowing you to realize maximum profit potential while, at the same time, limiting your potential losses. Our order types page also includes examples of how and when to properly utilize numerous types of stop and limit orders, including OCO orders, that are an integral part of forex risk management.
The online forex trading platforms offered through MBCFX allow you the flexibility to enter a wide variety of order types including orders that will help you manage currency risk:
- Limit Orders
It is an order to buy or sell a currency pair, which is executed when the price is breached. For example, you place an order to buy 100,000 euro at 1.4520. The platform will automatically fill your order when the offer reaches 1.4520. Limit orders can be placed to both buy and sell.
- Stop Orders
A stop order is a type of limit order that is placed to "lock in" a specified gain or loss, closing the position. Typically a risk management order used by clients to help manage their market exposure, this type of order can also be used to enter into a new position. Stop orders can be used to both buy and sell foreign currency contracts.
Once you are ready for forex trading, feel free to open a free demo account and try our online forex trading platform before opening a live forex trading account - you will be supplied with virtual money to test your foreign currency trading strategies risk-free.
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