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3-way Orders at Saxo Bank


Agenda • • • • •

Advantages of using 3-way orders Ratio-trading Support and Resistance levels Placing a 3-way order on your SaxoTrader 2 Example


What is a 3-way order? • Entry order (also called primary order) • Limit order (to take your profit at) • Stop Loss order (to limit your losses) Long position

Short position


What is a 3-way order? • Entry order (also called primary order) • Limit order (to take your profit at) • Stop Loss order (to limit your losses) Long position Limit to sell Entry

Stop Loss to sell

Short position


What is a 3-way order? • Entry order (also called primary order) • Limit order (to take your profit at) • Stop Loss order (to limit your losses) Long position

Short position Stop Loss to buy

Limit to sell Entry

Stop Loss to sell

Entry

Limit to buy


Advantages of using 3-way orders • Promotes trading discipline • Removes emotional impulses • Saves time


Ratio Trading


Risk-reward ratio

Reward Risk


Risk-reward ratio

Reward Risk To calculate the ratio, you need to know your: Entry Price Stop Loss Target Take Profit Target


2:1 and 3:1 Risk-Reward Ratio

1.4000

Entry Price – Buy EURUSD 1.4000 Stop Loss Target – EURUSD 1.3970 (30 pips) Profit Target – EURUSD 1.4060 (60 pips)

Entry Price – Buy EURUSD 1.4000 Stop Loss Target – EURUSD 1.3970 (30 pips) Profit Target – EURUSD 1.4090 (90 pips)

Risk/Reward Ratio – 60/30 = 2/1

Risk/Reward Ratio – 90/30 = 3/1

Entry

1.4000

Entry


2:1 and 3:1 Risk-Reward Ratio Entry Price – Buy EURUSD 1.4000 Stop Loss Target – EURUSD 1.3970 (30 pips) Profit Target – EURUSD 1.4060 (60 pips)

Entry Price – Buy EURUSD 1.4000 Stop Loss Target – EURUSD 1.3970 (30 pips) Profit Target – EURUSD 1.4090 (90 pips)

Risk/Reward Ratio – 60/30 = 2/1

Risk/Reward Ratio – 90/30 = 3/1

1.4060

Limit

1.4000

Entry

1.3970

Stop Loss

1.4000

Entry


2:1 and 3:1 Risk-Reward Ratio Entry Price – Buy EURUSD 1.4000 Stop Loss Target – EURUSD 1.3970 (30 pips) Profit Target – EURUSD 1.4060 (60 pips)

Entry Price – Buy EURUSD 1.4000 Stop Loss Target – EURUSD 1.3970 (30 pips) Profit Target – EURUSD 1.4090 (90 pips)

Risk/Reward Ratio – 60/30 = 2/1

Risk/Reward Ratio – 90/30 = 3/1

1.4090

Limit

1.4060

Limit

1.4000

Entry

1.4000

Entry

1.3970

Stop Loss

1.3970

Stop Loss


Support and Resistance Levels


Support level The price level at which the currency has historically had difficulty falling below

Support


Resistance level The price level at which the currency has historically had difficulty trading above

Resistance


A good trader knows that he will not win in every game. However, with a good risk-reward strategy, it takes only a few winners to make a very happy trader.


Placing a 3-way order on your SaxoTrader 2


To place a 3-way FX order, you need to use the Forex Orders module:


The Forex Orders module:

Entry Order


The Forex Orders module:

Entry Order

Take Profit Order


The Forex Orders module:

Entry Order

Take Profit Order

Stop Loss Order


Order Types

Sell

Buy


3-way orders can be seen, changed and cancelled in your Open Orders module:

You can see your also see your 3-way orders on a chart:


An Example


Entry


Entry

Take profit

Stop loss


Summary

• • • •

Advantages of using 3-way orders Ratio-trading Support and Resistance levels Placing a 3-way order on your SaxoTrader 2


Please contact us anytime: E1RegionNorthAmerica@saxobank.com Toll Free from USA: 1 800 961 0169 Direct phone number: +45 3977 6390

FX-3-way Orders - Part 1  

3-way Orders at Saxo Bank • Advantages of using 3-way orders • Ratio-trading • Support and Resistance levels • Placing a 3-way order on your...

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