Free Guide - Forex - RR

Forex Signals By RR
Forex Guide
What is Forex?
Forex, also known as foreign exchange or
currency trading, is the process of buying
and selling currencies with the aim of making
a profit from the fluctuations in their
exchange rates. The forex market is the
largest and most liquid financial market in
the world, with an average daily turnover of
around $6.6 trillion.
The forex market operates 24 hours a day,

five days a week, and is decentralized,
meaning there is no central exchange or
clearinghouse. Instead, forex trading is
conducted electronically over-the-counter
(OTC), with trades being executed through a
network of banks, financial institutions,
corporations, and individual traders.
Basics
Entry price - in forex refers to the price at which a trader opens a new position, either by
buying or selling a currency pair. It is the price at which the trader's order is executed in
the market.
Stop loss - it is an order that a trader can place with their forex broker to automatically
close a position at a predetermined price level in order to limit potential losses. Essentially,
it is a risk management tool that helps traders control their downside risk.
Take profit - it is an order that a trader can place with their forex broker to automatically
close a position at a predetermined price level in order to lock in profits. Essentially, it is a
risk management tool that helps traders maximize their potential gains.
Risk to reward - (RRR) ratio in forex trading is a comparison between the potential risk of
a trade and its potential reward. It is a key concept in risk management and can help
traders make more informed decisions about when to enter or exit a trade. For example, if
a trader enters a trade with a stop loss of 50 pips and a take profit of 100 pips, their risk
to reward ratio is 1:2.
Risk management
Risk management in forex trading is the process of identifying, analyzing, and
mitigating the risks involved in trading currencies. It is a critical aspect of successful
trading, as it helps traders to limit their potential losses and protect their trading
capital.
The main elements of risk management in forex trading include:

- Position sizing
- Stop-loss
- Take-profit
- Risk-to-reward rati:
- Trading plan
Safe risk management - in our opinion safe risk management is risking no more than
1%-2% of the account on one trade and never risk more than 10% of the account on all
running positions.
Moving stop loss to entry
Moving the stop loss to the entry price level in trading is a technique used by some
traders to reduce risk exposure in a trade. It involves adjusting the stop loss level to the
same price level as the entry price level, which means that if the trade goes against, you
will not lose any money.
The main reason why traders use this technique is to eliminate their risk exposure while
still maintaining the potential for profit. If the trade continues to move in your favor, you
can still profit from the trade, but if it reverses, you will not lose any money.
Here are the steps how to move stop loss to entry in Meta Trader:
1. Open the MetaTrader application and select the trade you want to adjust.
2. Right-click on the trade and select "Modify or Delete Order" from the context menu.
3. In the Modify Order window, change the stop loss level to the entry price level.
4. Click the "Modify" button to save the changes.
Closing part of trade
Partially closing a trade in trading can be important. Closing a portion of a trade can
help to manage risk by reducing the exposure to potential losses. By taking profits on a
portion of the trade, you can lock in gains and reduce the overall risk of the trade.
Here are the steps how to part of running trade in Meta Trader:
1. Open the MetaTrader application and locate the trade you want to partially close
in the "Trade" tab.
2. Right-click on the trade and select "Modify or Delete Order" from the context
menu.
3. In the Modify Order window, locate the „Volume" field and enter the amount of the
trade you want to close.
4. Click the "Sell" or "Buy" button, depending on the direction of the trade, to close
the specified volume of the trade.
5. A confirmation window will appear to confirm the new order. Review the details of
the order and click "OK" to confirm.
Would you like to learn more?
We have a forex course which will teach you:
- Trading from A to Z
- Most effective strategies
- How to make analysis like a pro
- How to not make common mistakes
- Fundamental analysis
- How to create your own strategy
With the course you also get 1:1 support from our mentor on telegram.
Click here to read more

Recommended broker
As a broker we highly recommend CPT Markets
Trade with 0 Commissions and low spreads starting at 0.7 pips on a responsive and User-
friendly trading platform. CPT Markets holds many licenses from prestigious financial
authorities worldwide including FCA UK, FSCA South Africa and IFSC Belize. We offer flexible
payment methods with separated local bank accounts for a more secure trading journey.
Click here to read more
READ MORE
Click here to register
REGISTER

Free Guide - Forex - RR

Uploaded by

Copyright:

Available Formats

Free Guide - Forex - RR

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Free Guide - Forex - RR

Uploaded by

Copyright:

Available Formats

Forex Signals By RR

The forex market operates 24 hours a day,

The main elements of risk management in forex trading include:

Click here to read more

Click here to read more

Click here to register

You might also like