Take Profit order
- Analyst AZA
How to make money with the help of a Take Profit order
Take Profit is used in the forex market, the stock market, the futures market. For a start, I'll tell you why this is needed and what it is.
When opening a deal and it is in profit, after a certain time it is advisable to use a pending order of Take profit. It will fix profits. As soon as the price reaches it, it will be executed. Even in your absence online. How much can you earn using it if you make a deal on the market? You can make good money on raising or falling prices. Do not despair, if you lose money, you can also easily earn them again.
But how to do this or what is it that will awaken?
It will depend on the price, on how much it will rise or how much it will decrease the price of opening the transaction. And yet, many forex traders, earn good money correctly using Take Profit order. They fix profits and try to improve their income. Working online, at the computer, they earn thousands of dollars every day.
What does the phrase Take Profit to mean?
It is to take profit. Its goal is to close the deal you have opened in the forex market with a profit. What will you need to do if you are not in front of the computer when the transaction is open? You can do anything because this order will do all the work for you.
How to set the Take Profit order?
Setting profit take is carried out on orders that are postponed, or are already open in the forex market. When you open a new transaction, you can immediately set yourself the level where, according to your calculations, the price should be, with the maximum profit level.
When trading to buy Buy, the Take profit will be executed at the Bid price. For the operation to sell Sell, the price is set lower, namely, Ask.
You will take profit from the transaction on one condition - if the price safely remains on the profitable side.
Calculation of the level of profit-taking.
How in reality the Take profit level is calculated?
Correctly is to calculate the ratio of profit to losses. You should give as much as possible to the market, and take away as much as possible from it. Therefore, the size of Take Profit should be several times greater than Stop Loss.
It should also be set at the maximum and minimum levels of the day, for a given price, for a certain time.
For example, if you set Take profit up to 90 points, you must set the Stop Loss distance to 30 points. In this way. The ratio of profit to loss will be 1 to 3.
There is an exception to this rule - these are strategies for short-term trading, in trader slang - scalping, as little profit is taken in a short time. It is simply impossible to adhere to these relations.
In all other markets, Stop Loss and Take Profit, act together, in harmony with each other.
So, how to earn with this order.
If you use Take Profit in your trading, then you will increase your earnings and, in time, you can well increase your account with a forex broker. Only it is necessary to be able to work with it.
To learn how to use this order, you need to open a real account in AzaForex broker, and earn real money on it, which you can then withdraw to a card or electronic purses.
To determine the additional levels at which profit should be recorded, you can set the Fibonacci grid, which is among the tools that are subject to technical analysis in the trading terminal ActTrader.
When the price rises or unfolds in a correction, you, with ease, determine these levels of Fibonacci retracement.
And to conclude my article, let's summarize:
To open a trading account with an AZAforex broker, a trader must learn to trade on Forex or other markets. After that, he can boldly take up work in the markets chosen by him. After you select your main online trading business and with its help, you will make trading transactions, while fixing profits on time, you will be able to increase your income many times. To do this, to begin with, learn on the demo account, practice setting orders, see how they are best used in your trading strategy. Learn all the tricks in the market that you have chosen. After that, you can safely invest and take up work in the foreign exchange market.
Do not despair, if you lose money, you can also easily earn them again