General Trading Platform Basics Bid / Ask
You will see this quote button where you will click buy or sell. You will hear about bid and ask during trading. Bid price (Sell) - Is the price which the market will buy the specific currency pair from you. Hence, you are selling your position. Ask price (Buy) - Is the price which you will buy the specific currency pair from the market. Hence, you are buying your position. Bid/Ask Spread - The difference of price between the bid and ask price (Ask - Bid = Spread). This is the “commission” that brokers get from you to execute your trades efficiently. Different brokers offers different spreads to you, some may be fixed, some may be viable during different timings. So it’s better to choose a broker with low spreads as possible so that you do not lose much at the start when you buy/sell the counter.
Position size Position size is the number of lots that you are going to enter with when trading the counter. When trading, best is to use a position size calculator to calculate the number of lots you are allowed to enter.
Stop loss Most Forex broker allow you to put in advance orders such as stop loss to protect your position from excessive losses. When you enter a trade, there should be an option where you can input the price that the trade will close if the price reached your threshold point.
Take profit Similar to stop loss, it is an advance order that automatically closes your position once the price has reached the threshold that you have input. This will allow you spend less time worrying and monitoring your trades.
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