A Forex, a financial arrangement within derivatives trading, doesn't involve physical exchange but focuses on cash settlements based on price differences between opening and closing trades. This feature makes Forex versatile and accessible for traders across financial markets.
Traders enter into a contractual agreement with a broker, speculating on price movements of an underlying asset without owning it. This setup allows traders to navigate markets without the disadvantages and costs associated with traditional trading.
Forex profits and losses are determined by price differences between entry and exit points. Traders are paid by brokers if the market moves in their favor and compensates brokers for losses.
The profit or loss in Forex trading is calculated by multiplying the price difference between entry and exit by the number of Forex units. This formula applies across various markets, including Forex, commodities, indices, and spot metals.
Choose the desired commodity market, whether it's crude oil, gold, natural gas, or others.
Decide on a buy strategy for long-term gains or a sell strategy for short-term profit, based on market analysis and predictions.
Establish the specific amount per point movement or units you wish to trade.
Utilise stop-loss orders, including guaranteed stop-loss orders, to effectively manage and limit potential losses.
Keep a vigilant eye on open positions, monitoring real-time profits and losses.
Take charge of closing your trade when deemed fit, ensuring proactive decision-making aligned with market conditions.