How to place an order and close a position when doing foreign exchange? For those who have just come into contact with foreign exchange, all foreign exchange knowledge is so strange, so Bian Xiao specially brought you how to place an order and close the position of foreign exchange, hoping to help those in need.
How to place and close foreign exchange orders.
Foreign exchange "order" refers to how you will enter or exit a transaction. Below, I will list the common order types (provided by almost all foreign exchange brokers). Once you place an order successfully, it means that you have entered the foreign exchange market.
-Market order-
Market order refers to an order to buy or sell a certain number of contracts immediately at the best price or market price at that time.
take for example
The current buying price of EUR/USD is 1.2 140, and the current selling price is 1.2 142. If you want to buy EUR/USD at the market price, the market will sell it to you 1.2 142. You will click the mouse and click the buy button on your trading platform, and the system will immediately execute the buy order at this price.
-Limit order-
Limit orders, that is, buy orders are set at points below the market price, or sell orders are set at points above the market price. When the exchange rate reaches the set price target, it will be automatically executed, otherwise it will not be executed.
take for example
At present, the euro/dollar exchange rate is 1.2050. You plan to short when the exchange rate reaches 1.2070. At this time, you have two choices: either sit in front of the computer and wait for the exchange rate to rise to 1.2070 before shorting the market price, or set a limit order at 1.2070. Then, you stay away from the computer and wait for the system to automatically execute the instructions.
-Set up your own stop loss order-
Set up a stop loss order, that is, set up a pay order at a point higher than the market price, or set up a sell order at a point lower than the market price. This strategy is used when the market breaks through.
take for example
If the trader thinks that when the exchange rate reaches a certain price, it will confirm the establishment of the current trend and will continue this trend, in this case, this strategy can be adopted.
The current price of GBP/USD 1.5050 is on the rise. You believe that if the price hits 1.5060, it will continue to rise. At this point, you also have two choices: one is to sit in front of the computer and buy at the market price when the exchange rate reaches 1.5060, or choose to set your own stop-loss order. When you think the price will continue to run at the current price, you set the stop loss order at 1.5060 to pay the bill.
-Stop loss order-
The purpose of setting a stop loss order is that if the price fluctuates in the opposite direction to your judgment, you can avoid additional losses in time. Please remember this type of order. The stop loss order will remain valid until you close your position or cancel it.
take for example
You plan to earn more euros/dollars at the price of 1.2230. In order to limit your maximum loss, you set a stop-loss order at 1.2200. This means that if you go in the wrong direction and the EUR/USD falls below 1.2200, your trading platform will automatically execute the selling order of 1.2200 for you and automatically lock in the loss of 30 points.
If you are not going to sit in front of the computer all day worrying that you will lose all your money, a stop loss order will be very useful. Stop loss orders can be set when opening positions.
-Move the stop loss order-
Moving stop loss, that is, the set stop loss point changes with the fluctuation of price.
take for example
You plan to short USD/JPY at 90.80 and set a moving stop loss of 20 points. This means that at the beginning, your stop loss position is 9 1.00. If the price falls to 90.50, your stop loss will become 90.70.
What do you mean by buying and selling positions?
Hello, this is a term in gold and silver td. First of all, understand the meaning of opening and closing positions. Public traders buy or sell a certain number of standard contracts. The process by which traders hedge the original contract by trading in the same amount and in the opposite direction. Buying and opening positions: refers to the trading means adopted by investors to be bullish on future price trends. Buying and holding a bullish contract means that the account funds buy the contract and freeze it. Selling and closing positions: refers to the trading means that investors are not optimistic about the future price trend, but sell the bullish contract they originally bought and unfreeze the investor's capital account. Selling and opening positions: refers to the trading means adopted by investors to bearish on future price trends and sell bearish contracts. Selling and opening positions, account funds are frozen. Buying and closing positions: It means that investors make up the previous selling contracts instead of bearish on the future market, hedge the original selling contracts and withdraw from the market, thus unfreezing the account funds.
What does liquidation mean? What does it mean to take profit and close the position?
The closing price is the price at the time of sale. Stop loss is to set the maximum loss, and take profit is to set the maximum profit. Floating profit and loss is the difference between the position value of the contract held by the trader at the closing price of the transaction and the original position value.
What does compulsory liquidation of stocks mean?
Forced liquidation is sold by brokers.
Because investors carry out margin trading, brokers will lend money or securities to investors only after the investors transfer the collateral to their accounts. Suppose the investor's collateral suddenly plummets, then the collateral funds are not enough and the investor needs to transfer the collateral again. If it is not transferred, the brokerage firm will forcibly close the investor's margin financing and securities lending account.
Therefore, there are early warning lines and flat warehouse lines for margin financing and securities lending.
Early warning line means that maintaining the guarantee ratio below 140% will trigger an early warning, so investors will be prompted to add collateral;
The liquidation line is to maintain the guarantee ratio below 130%. If the broker prompts you, you will be forced to close your position without increasing the collateral. Prompted by the brokerage firm, the proportion of additional maintenance margin for investors shall not be less than 140%.
If there is no additional margin after the brokerage prompt, all the expenses incurred shall be borne by the investor. However, if the broker fails to be prompted by the system to close the position, the broker also needs to bear the losses of some customers.
Is it a high P/E ratio or a low P/E ratio to buy stocks?
Theoretically, it is better to have a lower P/E ratio, because a low P/E ratio means that the stock price is undervalued, and it is more likely that the stock will rise later. But it can't be said that stocks with low P/E ratio are good, because the P/E ratio of stocks is only an evaluation index of stock price, which should be analyzed in combination with factors such as stock fundamentals, company net profit, market industry, technology and news.
For example, the P/E ratio of banks, steel and other industries is relatively low, and some P/E ratios are 5- 10 times, and their stock prices fluctuate little. If you buy at this time, for some investors who just want to make money quickly, there will be basically no ups and downs, so buying stocks with low P/E ratio does not necessarily mean that you will make money, it depends on the situation.
Some emerging industries, the Internet and other industries have higher P/E ratios. The price-earnings ratio of some stocks even exceeds 50 times, but their share prices have been hitting record highs. So buying some stocks with high P/E ratio can also make money. Therefore, the average price-earnings ratio of different industries will be different.
The standard of stock price-earnings ratio is different in different industries. Some industries generally have higher P/E ratios, while others generally have lower P/E ratios. P/E ratio is only a reference target. It can't be said that the P/E ratio is lower or higher, depending on the situation.
Generally speaking, the stock price-earnings ratio is within the relatively normal range of 14-28. If the price-earnings ratio of the stock is less than 0, it means that the company is losing money; If it is between 0- 13, the value is underestimated; If it is above 30, the value is overvalued.
P/E ratio = share price/net profit per share. The higher the stock price, the higher the P/E ratio, and the lower the stock price, the lower the P/E ratio, because the stock market fluctuates greatly and is unpredictable. When you are trading stocks, you must analyze them in many aspects, not just the price-earnings ratio.