You want to short when the exchange rate reaches 1.2070. At this point, you have two choices: you can either sit in front of the computer and wait for the exchange rate to reach 1.2070 and then short at the market price, or you can set a limit order at 1.2070, and then you can step away from the computer and wait for the system to automatically execute the order.
Set up your own stop-loss order, that is, set up a buy at a point higher than the market price, or set up a sell at a point lower than the market price.
This strategy is used when there is a breakthrough in the market.
For example, if traders believe that the exchange rate at a certain level will confirm the establishment of the current trend and continue the trend, the strategy can be used in this case.
A market order is an order to buy or sell a specified number of contracts immediately at the prevailing market price or market price.
For example: EUR/USD is currently bid at 1.2140 and bid at 1.2142.
If you want to buy EUR/USD at market prices, the market will sell you at 1.2142.
You will tap your mouse and click the BUY button on your trading platform, and the system will immediately execute a buy order at that price.
/ USD is currently trading at 1.5050 and is on an uptrend.
You believe that if the price hits 1.5060, it will continue to rise.
At this point, you also have two options: first, sit at the computer and buy at the market price when the price reaches 1.5060, or, choose to place your own stop loss order, and when you feel that the price will continue to move towards the current price, you place a stop loss order at 1.5060.
The purpose of placing a stop-loss order is to avoid additional losses if prices move in the opposite direction.
Please keep this type of order in mind.
A stop loss order remains in effect until your position is closed or you cancel it.
For example: You want to go long EUR/USD at 1.2230.
To LIMIT YOUR maximum loss, YOU PLACE a STOP LOSS order at 1.2200.
This means that if you misjudge the direction and EUR/USD breaks below 1.2200, your trading desk will automatically place a sell order for you at 1.2200 and automatically lock in a loss of 30 points.
Stop-loss orders can be very useful if you’re not going to sit in front of your computer all day worrying that you’re going to lose all your money.
At the same time you open your position, you can place a stop-loss order.
Moving stop loss, that is, the stop loss is set to fluctuate with the price.
For example: YOU want to short USD at 90.80 / and place a moving stop loss of 20.
This means that, initially, your stop loss is at 91.00, and if the price falls to 90.50, your stop loss is at 90.70.
As long as the price moves in the same direction as you think, or even if it moves in the opposite direction but does not reach 20 points, your list will remain valid.
Once the price reaches the moving stop loss level, the stop loss order is automatically triggered, and you will automatically close the position.
Russia and Ukraine still shrouded in clouds, gold oil rose early in the session, the U.S. inflation data growth is expected to climb again.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.