How to Place a Stop Loss and Take Profit Order in the Forex Market - Page 2

David Waring · 11-18-2008, 10:14 AM

Quote:

Originally Posted by bains1971

Hi David i found the open position window and put in my first stop, limit and Trailing exercise and left it overnight, it closed during the night but i lost track of what i was doing. Is their a place where i can see what my history is because their was nothing in the closed position window. We only use Trailing stops when we buy and not when we sell or can we use them for both.

Hi Bains1971,

Glad to hear you found everything ok.

Your trade history can be found for whatever time period you would like by clicking the report button at the top right of the platform, and then selecting the dates that you would like to see the trade history for.

A trailing stop is simply an order to close your position should the market reach a certain level, which follows the market as it moves in your favor. With this in mind you can use them for both long (buy) and short (sell) positions.

Hope that helps and let me know if there are any other questions.

Best Regards,
Dave

prolog · 12-02-2008, 06:10 AM

Hi Dave

If I close my platform or my Internet connection fails after setting the stop loss and the target profit, will the firm continue monitoring the price?

Tekmnd · 12-02-2008, 06:49 AM

Hi again prolog

When you set a stop (any type), there are usually 2 choices. The first is good for the day. This stop will be in place until the market closes for the day, even if you close your trading platform.

The second is GTC (good to cancelled). It will be there until it is executed, even if it takes weeks. Keep in mind though that it only gets executed during normal market hours. This means that if the price has a huge gap between trading days, you may get filled at a much different price.

An example is best-
You buy an airline stock at $10, and place a GTC stop at $9.00. During the night, 2 of its planes crash into each other midflight, and the stock drops to $2.00 in overseas markets. When the market opens the next day, your $9.00 stop will be executed and filled at $2.00.

Cheers
Tek

David Waring · 12-02-2008, 10:25 AM

Quote:

Originally Posted by prolog

Hi Dave

If I close my platform or my Internet connection fails after setting the stop loss and the target profit, will the firm continue monitoring the price?

Hi Prolog,

Glad to hear from you.

To expand on what Tek has said here in the forex market most platforms do not offer the option to have the order canceled at the end of the day so all orders default to good till canceled.

There are a minority of platforms out there that hold orders on the traders computer however on most platforms, including the FXCM platform, orders are held on the firm's servers so they are there regardless of wether you turn your computer off or lose your internet connection.

Hope that helps.

Best Regards,
Dave

Val · 02-22-2009, 05:01 PM

Hi, David.
Although the Stop Orders make absolutely perfect sense to me, the rationale for Limit Orders escapes me.
I mean, why should one be willing to limit one's profits?
To wit:
as I am going short, let's say on the EUR/USD, and the rate is decreasing should I not just place a Stop Order only?
I am almost certain that I am missing something in the logistics of the trading mechanism, but can not see it.
Could you please advise?
Thank you.
Val

David Waring · 02-23-2009, 12:14 PM

Hi Val,

The idea of a limit order when used to close out profits on an open position, is that you are locking in profits in case the market turns back against you.

Lets say for example that you get long the EUR/USD at 1.2800 because you look at a chart and don't see any resistance until the 1.3000 level. At the 1.3000 level however you want to be out of the trade because you think the market will then turn back around because there is heavy resistance there. In this instance one way to exit the trade would be to place a limit order at 1.3000 to exit your position at a profit once it hit that level.

You are correct however that many traders do not use limit orders but instead trail their stop up behind the market as the position moves in their favor.

Hope that helps.

Best Regards,
Dave

Val · 02-23-2009, 12:54 PM

Hi, David

Got it. Makes sense.
Thank you again.
Best regards,
Val

Las · 04-19-2009, 10:54 PM

Hi Dave,
I am new to forex still did not understand some of the lessons and I have several questions here.In your lessons you covered about trading indicators,how to trade using charts?what I mean is when I trade using a charts and using several indicators and found a several potential to trade,do I enter a position by just clicking on the charts or do I have to go the dealing rate and click on them to enter a position?

When I right click on the candle stick on the charts,it says create an entry order or market order.can you explain to me what is entry and market order and the use of them.

How to set a stop loss or limit from a chart?

When I click on the sell on the EUR/USD,I still gain profit and why is that?do I have to buy the currency again after I sell it even tough I already close the position?

Thanks a lot Dave

04-20-2009, 11:57 AM

Hi David,
I got some problem here.I still don't understand about the stop and limit orders.where do I find the exact spot or point to place a stop or limit orders from a charts?or should I enter the stop orders by 10 pips and limit orders by 20 pips or??

Hope this make sense

David Waring · 04-20-2009, 02:38 PM

Quote:

Originally Posted by Las

Hi Dave,
I am new to forex still did not understand some of the lessons and I have several questions here.In your lessons you covered about trading indicators,how to trade using charts?what I mean is when I trade using a charts and using several indicators and found a several potential to trade,do I enter a position by just clicking on the charts or do I have to go the dealing rate and click on them to enter a position?

When I right click on the candle stick on the charts,it says create an entry order or market order.can you explain to me what is entry and market order and the use of them.

How to set a stop loss or limit from a chart?

When I click on the sell on the EUR/USD,I still gain profit and why is that?do I have to buy the currency again after I sell it even tough I already close the position?

Thanks a lot Dave

Hi Las,

Glad to hear from you and welcome to the community.

While you can enter and exit positions using the charts on the FXCM platform, I recommend learning how to trade outside of the charts first. With this in mind, in module two of the below free video course, you can find several lessons which are designed to walk you through the complete process of how you place orders on the FXCM platform:

Forex Course - InformedTrades

Hope that helps and look forward to seeing you around the community.

Best Regards,
Dave

02-22-2009, 05:01 PM	#15 (permalink)
Val Badges About Assets Join Date: Feb 2009 Posts: 13 InformedPoints: 0	Limit orders Hi, David. Although the Stop Orders make absolutely perfect sense to me, the rationale for Limit Orders escapes me. I mean, why should one be willing to limit one's profits? To wit: as I am going short, let's say on the EUR/USD, and the rate is decreasing should I not just place a Stop Order only? I am almost certain that I am missing something in the logistics of the trading mechanism, but can not see it. Could you please advise? Thank you. Val

02-23-2009, 12:14 PM	#16 (permalink)
David Waring InformedTrades Founder Community Host Badges About Assets Total Awards: 4 Join Date: Nov 2007 Location: Miami, FL Posts: 5,633 InformedPoints: 0.13	Hi Val, The idea of a limit order when used to close out profits on an open position, is that you are locking in profits in case the market turns back against you. Lets say for example that you get long the EUR/USD at 1.2800 because you look at a chart and don't see any resistance until the 1.3000 level. At the 1.3000 level however you want to be out of the trade because you think the market will then turn back around because there is heavy resistance there. In this instance one way to exit the trade would be to place a limit order at 1.3000 to exit your position at a profit once it hit that level. You are correct however that many traders do not use limit orders but instead trail their stop up behind the market as the position moves in their favor. Hope that helps. Best Regards, Dave __________________ My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

02-23-2009, 12:54 PM	#17 (permalink)
Val Badges About Assets Join Date: Feb 2009 Posts: 13 InformedPoints: 0	Limit Orders Hi, David Got it. Makes sense. Thank you again. Best regards, Val

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12-02-2008, 06:10 AM	#12 (permalink)
prolog Badges About Assets Join Date: Nov 2008 Posts: 34 InformedPoints: 0	Hi Dave If I close my platform or my Internet connection fails after setting the stop loss and the target profit, will the firm continue monitoring the price?

12-02-2008, 06:49 AM	#13 (permalink)
Tekmnd Community Co-Host Badges About Assets Total Awards: 6 Join Date: Aug 2008 Location: San Diego Posts: 2,347 InformedPoints: 18,963.18 Funds	Hi again prolog When you set a stop (any type), there are usually 2 choices. The first is good for the day. This stop will be in place until the market closes for the day, even if you close your trading platform. The second is GTC (good to cancelled). It will be there until it is executed, even if it takes weeks. Keep in mind though that it only gets executed during normal market hours. This means that if the price has a huge gap between trading days, you may get filled at a much different price. An example is best- You buy an airline stock at $10, and place a GTC stop at $9.00. During the night, 2 of its planes crash into each other midflight, and the stock drops to $2.00 in overseas markets. When the market opens the next day, your $9.00 stop will be executed and filled at $2.00. Cheers Tek

04-19-2009, 10:54 PM	#18 (permalink)
Las Badges About Assets Join Date: Apr 2009 Location: Brunei Posts: 20 InformedPoints: 0	Hi Dave, I am new to forex still did not understand some of the lessons and I have several questions here.In your lessons you covered about trading indicators,how to trade using charts?what I mean is when I trade using a charts and using several indicators and found a several potential to trade,do I enter a position by just clicking on the charts or do I have to go the dealing rate and click on them to enter a position? When I right click on the candle stick on the charts,it says create an entry order or market order.can you explain to me what is entry and market order and the use of them. How to set a stop loss or limit from a chart? When I click on the sell on the EUR/USD,I still gain profit and why is that?do I have to buy the currency again after I sell it even tough I already close the position? Thanks a lot Dave

04-20-2009, 11:57 AM	#19 (permalink)
Unregistered Badges About Assets Posts: n/a InformedPoints: 0 [Points Log]	Hi David, I got some problem here.I still don't understand about the stop and limit orders.where do I find the exact spot or point to place a stop or limit orders from a charts?or should I enter the stop orders by 10 pips and limit orders by 20 pips or?? Hope this make sense