Trading Basics: Basics of Opening a Trade
The IRONEFX trading platform makes trading simpler by showing you when you open trades the potential profit or risk to your account before you open each trade.
The first choice is whether a trader intends on opening a trade on current prices (Trade) or whether you want to open a trade once an asset reaches a future level (Pending).
The Investment tab then shows you how much of your account you are committing to a trade. For instance, if you enter an investment of $1,000 and the leverage is 1:2 then you could open a trade for $2,000 in an asset. If that asset had a current value of $50 (for instance if trading Crude Oil) this would mean you could trade on 40 units (barrels) of oil and if it moved $3 a barrel you could profit $120 on that trade.
The set leverage of your account is stated next. If you want to change your leverage, you can change your type of account or talk to your trading specialist.
On the right side of the screen are the buttons and indicators showing the current price of the asset.
The green BUY button shows the price if you want to open a trade with an expectation of the price increasing.
The red SELL button shows the price if you want to open a trade with an expectation of the price going down.
When reading about trading, Buying is also called going long or being bullish while Selling is also called going short or being bearish.
It’s important to know in this market that a trader is not actually buying or selling but opening trades choosing an expected direction of movement so you can sell an asset without ever buying it.
The Take Profit setting indicates what price or profit % you want a trade to close at automatically when you are away from the trading platform. This can later be amended or trades can always be closed manually by hitting the close button on an open trade.
The Stop Loss setting conversely allows you a setting to manage your risk on any trade in the same terms as the Take Profit setting.
The green Place Order button will execute (open) the trade. To close the trade, once again you can manually close a trade, set a take profit or stop loss for the trade to close automatically or if you leave a trade unattended without a stop loss or take profit the trade could close if the market moved enough against your trade’s direction.
The set Potential Profit and maximum loss on each individual trade will be shown under the place order button before opening the trade.
For further insights into operating the IRONEFX trading platform, schedule a conversation with your trading specialist.