About Forex

Stop Losses and Take Profit Orders

Forex trading can carry significant risks, and various techniques can be used to minimise and control this.

Take Profit

A Take Profit is an automated order you set so that your account will liquidate a particular currency position if it reaches a certain level of profit. This way you ensure yourself a profit. The downside to the Take Profit is that sometimes you get in on the ground floor of an especially profitable trend that continues long after you've exited and you accidentally deprive yourself of an even more profitable trade.

Take Profit and Stop Loss Orders are crucial tools in enabling you to professionally manage your trades. Where you set these orders depends on your level of risk, but it is good practice to use them with every trade you make. Management of positions and your investment is key to successful Forex trading.

Take Profit orders mean that you are able to take advantage of any profits before the rate falls again and your profit reduces, without constantly monitoring your trades.

Stop Loss

Radhai Investment gives you the option of setting your own Stop Loss Orders so that you control the value of your trade and can ensure that it doesn't drop below a certain level. This way you can minimize your risk on each investment without constantly monitoring all your trades. It's important to remember that a Stop Loss does not guarantee to execute at your requested rate, though in Normal Market Conditions most Stop Losses are filled at the requested rate. Normal Market Conditions reflect any time in the market when liquidity is high and there are no extraordinary events occurring that increase volatility.

A Stop Loss Order is an automatic close of a trade that you can set to happen if your currency goes in a direction that would cause you to lose money. For example, if you sold a currency short with the intention of letting its value decrease and buying it back for a profit, you could set a stop loss order if the currency moved upwards by a certain amount. Additionally, if you bought a currency and it began to fall, your Stop Loss would keep you from losing more than you wanted to by selling the currency automatically.