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  • Dear traders!

    This week, a RoboForex project called ContestFX offers you the following demo competitions:

    The 152nd competition of "Demo Forex" has been running since last Monday.
    The 439th competition of "Week with CFD" has just started.
    The 573rd competition of "Trade Day" will start on 15.11.2023 at 12:00.
    The 487th competition of "KingSize MT5" will start on 16.11.2023 at 20:00.

    To participate in our contest, all you need to do is to go through a simple registration procedure just once, and then any of the competitions you like will be available to you in just a couple of mouse clicks.

    We wish all of you successful trading!

    Sincerely,
    RoboForex Contest

    Comment


    • GBP/JPY Forecast: Will the Correction Begin in the Q4 of 2023?


      The GBP/JPY pair is among the currency pairs that are highly favoured in the global currency market. In this article, we will examine the primary fundamental factors affecting the GBP/JPY exchange rate, analyse its performance in 2023, and explore the short-term and medium-term forecasts provided by experts.

      Overview of the GBP/JPY currency pair

      The GBP/JPY pair is a cross rate comprising the two popular currency pairs, GBP/USD and USD/JPY. It is worth reminding that a cross rate is the value of one country’s currency denominated in another country’s currency and determined based on their value against a third country’s currency. In this case, the latter refers to the US dollar, the key international reserve currency. The GBP/JPY exchange rate reflects fluctuations in the British pound sterling (GBP) value against the Japanese yen (JPY).

      The UK currency is the base currency in this pair, and the current price reflects how many yen are needed to buy or sell one pound sterling. When the pair quotes increase, it indicates a strengthening UK currency. Conversely, a decline signifies a weakening pound sterling against the yen.

      Trading characteristics of the GBP/JPY pair
      • The yen exerts the most significant influence on the currency pair’s performance. If there is a strong directed movement of the JPY, the pair’s quotes are likely to follow it. At the same time, owing to its high volatility, the GBP may occasionally set the direction of the movement
      • The pair trades round the clock from Monday to Friday inclusive
      • The highest activity is observed during the Asian, European, and American trading sessions
      • The GBP/JPY pair experiences high daily volatility within the 1,000-1,500 pips range. During times of market force majeure, it has the potential for strong movements exceeding 3,000 pips per day
      • Thanks to its popularity and high liquidity, the spread for this pair ranges around 10 pips in a quiet market

      Fundamental factors influencing the GBP/JPY quotes

      The Bank of England’s monetary policy

      The primary tool used by the Bank of England, the UK’s central bank, to control inflation and influence the exchange rate of the national currency is the implementation of changes in the interest rate. If the interest rate increases, the pound sterling exchange rate appreciates, while a decrease in the interest rate leads to a decline in the exchange rate. Since December 2021, the Bank of England has executed a series of interest rate hikes to curb mounting inflation.

      The rate increased from 0.1% to 5.25% during this period. The Bank of England’s Monetary Policy Committee aims to achieve a 2% inflation target. In October 2023, the Consumer Price Index (CPI) rose by 6.7% compared to 2022 figures. With inflation rates slowing, the UK central bank paused its interest rate hikes from August 2023. The regulator sees risks of a potential slowdown in the country's economy due to a significant tightening of credit terms.

      GBP/JPY performance in 2023

      The GBP/JPY pair has maintained a consistent upward trend throughout 2023. The quotes surged from a low of 156.00, where they hovered at the beginning of the year, to a 7-year high of 186.76 in late August. The absence of clear signals from the Bank of Japan regarding potential monetary tightening exerts upward pressure on the yen, driving the currency pair’s quotes higher.

      At the same time, the Bank of England has actively raised interest rates throughout 2023 in response to mounting inflationary pressure. The significant difference between the rates resulted in the serious weakening of the yen and the gradual growth of the pair’s exchange rate. At the time of writing on 9 November 2023, the quotes hovered around 185.40, nearing their annual high.

      https://blog.roboforex.com/wp-content/uploads/2023/11/gbpjpy-1.png

      GBP/JPY technical analysis

      The pair has steadily grown since September 2022, moving within the long-term daily ascending channel. At the end of August 2023, the quotes reached an annual high of 186.76, followed by a slight downward correction during which the price hit a low of 174.28. It is worth noting that this is now a local support level.

      Read more at R Blog - RoboForex

      Sincerely,
      RoboForex team

      Comment


      • RoboForex investment and trading platforms win Global Brands Magazine Awards


        We are delighted to announce that two of our flagship products have received prestigious accolades at the Global Brands Magazine Awards. Our CopyFX investment platform was awarded the title of "Best Copy Trading Platform", and R StocksTrader earned recognition as the "Best Multi-Asset Trading Platform".



        Trade in R StocksTrader
        the Best Multi-Asset Trading Platform
        • Integrated Copy Trading for mobile app
          Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader
        • 12,000+ instruments
          US Stocks, Indices, ETFs, CFDs on stocks, and other popular assets
        • Cost-effective conditions
          Enjoy market-based spreads from 0 pips, a commission for Stocks from 0.009 USD per share
        • Useful functions
          One-click trading directly from charts, a built-in strategy constructor, advanced watchlists, etc
        • Corporate actions
          Automated dividend payments and supported corporate actions (cash dividends, splits, mergers, and more)



        Invest without borders with
        the Best Copy Trading Platform
        • Versatility
          Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader, or guide newcomers to top Traders and earn a share of their commission as a Partner
        • Security
          Robust handling of high-volume transactions, unmatched security protocols, and exceptional network stability
        • Integration
          Seamless integration with the top-tier MetaTrader 4/5, as well as via the exclusive R StocksTrader platform
        • Adaptability
          You can choose multiple roles or simply select one - be it a Trader, Investor, or Partner


        Sincerely,
        The RoboForex team

        Comment


        • Dear traders!

          This week, the ContestFX project will continue, as usual, with the following competitions:

          The 152nd competition of "Demo Forex" has gained "cruising speed".
          The 440th competition of "Week with CFD" has kicked off today.
          The 574th competition of "Trade Day" will start on 22.11.2023 at 12:00.
          The 488th competition of "KingSize MT5" will start on 23.11.2023 at 20:00.

          Let us remind you that upon winning, all winners receive prize funds to their real accounts, and this money can be used for trading in the Forex market instead of investing the winners' own savings.

          Do not miss your chance to be one of them!

          Sincerely,
          RoboForex Contest

          Comment


          • RoboForex: upcoming changes to the trading schedule in view of the Thanksgiving holiday in the US


            We are informing you of the upcoming adjustments to the trading schedule due to the Thanksgiving holiday in the US.

            This schedule is intended for informational purposes only and may be subject to further amendments.

            MetaTrader 4 / MetaTrader 5 platforms

            Schedule for trading on CFDs on the US indices (US30Cash, US500Cash, USTECHCash) and the Japanese index JP225Cash
            • 23 November 2023 – trading stops at 7:40 PM server time
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on Oil (Brent, WTI)
            • 23 November 2023 – trading stops at 7:40 PM server time
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on CFDs on US stocks
            • 23 November 2023 – no trading
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on CFDs on US futures
            • 23 November 2023 – no trading
            • 24 November 2023 – trading stops at 7:15 PM server time

            R StocksTrader platform

            Schedule for trading on US stocks and ETFs
            • 23 November 2023 – no trading
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on CFDs on US stocks and ETFs
            • 23 November 2023 – no trading
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on CFDs on the US indices
            • 23 November 2023 – trading stops at 7:40 PM server time
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on oil (WTI.oil, BRENT.oil)
            • 23 November 2023 – trading stops at 7:40 PM server time
            • 24 November 2023 – trading stops at 8:00 PM server time
            Schedule for trading on CFDs on US futures
            • 23 November 2023 – no trading
            • 24 November 2023 – trading stops at 7:15 PM server time

            Please take note of the above amendments to the trading schedule as you plan your trading activity.

            Sincerely,
            The RoboForex Team

            Comment


            • The RoboForex partners promotion with cash prizes worth $1,000,000 continues!

              We remind you that all RoboForex partners can take part in our grand promotion and win cash prizes.

              The distribution of 60 prizes from $1,000 to $15,000 is organised once a month to April 2024.

              The winners will be decided by the market.

              A system as transparent as possible - It's all up to stocks.
              Join our grand promotion!

              Become a Partner | I want to take part!



              Sincerely,
              The RoboForex Team
              Last edited by Vlad RF; 11-23-2023, 12:16 PM.

              Comment


              • Dear traders!

                This week, a RoboForex project called ContestFX offers you the following demo competitions:

                The 152nd competition of "Demo Forex" is approaching its end.
                The 441st competition of "Week with CFD" has just started.
                The 575th competition of "Trade Day" will start on 29.11.2023 at 12:00.
                The 489th competition of "KingSize MT5" will start on 30.11.2023 at 20:00.

                Becoming a participant of our competitions is easy - all you need to do is to register an account just once and then any of the contests you like will be available to you in just a couple of mouse clicks.

                Join us!

                Sincerely,
                RoboForex Contest

                Comment


                • How to Trade on Forex? Ultimate Guide for Beginners


                  What are financial markets – exchange and Forex?

                  When an uninitiated reader encounters the collocation "financial market", they discern no difference between such terms as "stock market", "exchange", "Forex", "equity market", "bond market", "currency market", "derivative market", etc. So, I think there should be an explanation what the financial market really is. First of all, understand and remember that the financial market is not just a place for trading, but the entire system of the economic relations, which appeared in the process of exchanging different goods and recourses.

                  The financial market is an environment for mobilization and aggregation of capital, for loaning, exchanging currencies, and investing in the industrial sector. Balance of supply/demand for borrowed funds forms the global financial market. The global financial market can be classified according to types of goods that are traded. There are following types of financial markets:
                  • The currency market (Forex). The basic asset here is currencies, which are bought and sold by brokerage companies, banks, and investment funds.
                  • The stock market. This is the place where they trade securities (stocks, bonds, bills, derivatives).
                  • The commodity market. Among assets that are traded here are oil, metals, farm produce.
                  • The precious metals market is often considered as a part of the commodity market, but it should be classified as a separate market due to significant trade turnover growth. As a rule, precious metals often serve as safe haven assets.

                  Trading procedures on Forex

                  Since the Forex market is an OTC market, it doesn’t imply actually buying or selling currencies like they do in exchange offices.

                  A lot of people ask themselves a question: "How do I become a trader and start trading on financial markets?" Let’s try to track the career path of a future "big boy from Wall Street" step by step. Early stages in trading on Forex and other financial markets are pretty similar. Let’s take a closer look at this process by the example of the currency market.

                  First of all, a trader-to-be chooses a broker and decides on the trading platform they are going to use for trading. A variety of trading terminals available on the market allows to choose one that meets all their requirements and preferences. After choosing the platform, they have to decide on a trading account type. As a first step, it’s better to go for a standard demo account, which helps to learn how to open and close positions, place Stop Loss and Take Profit levels, and use charts and indicators.

                  Stop Loss is a protective order placed by a trader to limit possible losses in case of negative market situation. The order level is defined on basis of the current market situation, risks that a trader can afford, and their trading strategy.

                  Take Profit is an order to close a position when the instrument quotes reaches some specific price level. The order parameters are set by a trader based on their forecasts or according to their trading strategies. Take Profit orders can be placed not lonely at the position opening, but later as well. Also, there are methods of trading without Stop Loss and Take Profit levels, when a trader closes each deal manually after evaluating the current market situation.

                  How to trade on demo account?

                  Let’s assume that a trader chooses MetaTrader 4 terminal, opens a demo account with 10,000 virtual USD, and decides to trade EUR/USD positions of 1 lot. In this case, a trader opens positions using virtual money and if they lose it, no real financial losses will be incurred. Any trader has an opportunity to open several demo account with the same broker and trade any amount of virtual funds.

                  After that, it’s time to learn how to open positions. After opening the EUR/USD chart, a trader sees that the price may rise in the future (we’ll later discuss what reasons this conclusion is based upon). To open an order, we choose "New order" tab, specify the volume (by default, 1 lot), set Stop Loss and Take Profit levels, and add comment to the order if necessary.

                  Read more at R Blog - RoboForex

                  Sincerely,
                  RoboForex Team

                  Comment


                  • S&P 500 Forecast for 2024: Can the Index Hit 5,000?


                    On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024.

                    Overview of the S&P 500

                    The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc.

                    Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market.

                    The S&P 500 eligibility criteria
                    • Market capitalisation is greater than or equal to 14.5 billion USD
                    • At least 50% of shares should be available for public trading
                    • Stocks should be traded on the NYSE or NASDAQ
                    • The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US
                    • Operations for the last four quarters should be profitable

                    The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company.

                    Looking back: the S&P 500 performance in recent years

                    According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%.

                    The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022.

                    https://blog.roboforex.com/wp-content/uploads/2023/11/sp-1.png

                    Global economic factors influencing the S&P 500
                    • The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions
                    • Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth
                    • Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations
                    • Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth
                    • Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index
                    • Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes

                    Read more at R Blog - RoboForex

                    Sincerely,
                    The RoboForex Team

                    Comment


                    • What is CFD and Its Difference from a Real Asset?


                      Are there any beginners, who haven’t asked themselves a question what a CFD is and how it is different from a real asset? Let’s go deeper in these terms and try to determine which one of them is more interesting and easier-to-use for both beginners of stock exchange markets and experienced investors.

                      What is CFD?

                      First of all, one should know what CFD stands for. CFD means a Contract for Difference. As a matter of fact, it is an instrument traders can use for trading or speculating in price differences, but without buying a base asset, stocks, metals, or commodities.

                      Trading on the stock market

                      Now, let’s compare trading stocks and CFDs. In order to participate in trading stocks, a trader has to open an account. In this case, the leverage value will be 1:20, at most. This, in its turn, means that traders with small deposits will have limited opportunities for trading.

                      Usually the minimum contract size on stock exchange markets is 1 lot, which is 100 stocks. For those, who would like to use smaller contract sizes, in R StocksTrader, the multiasset trading platform the minimal contract size is 0.01 lots - 1 stock. The maximum contract size is limited only by the amount of funds on a trader’s account or the number of traded stocks. It’s quite easy to calculate how much money a trader requires for trading, if, for example, a stock of one popular social network costs 181 USD. Margin requirements for 1 lot (100 stocks) will be 181 * 100 = 18,100 USD.

                      With small deposits, there will be no opportunities for opening this position. But this is just one of the many examples. However, on stock exchange markets one can find stocks at the price from 0.01 USD, that’s why there are a lot of options for trading even if there is insufficient money for expensive stocks. Apart from this, one should take into account the platform expenses (so called monthly fee) and the commission to be paid to a broker for every opened and closed positions (on average, a trader will spend on this about 4,000 USD a year). Holding positions overnight is free at some of the brokers, but some of them make traders fulfill some certain conditions.

                      Corporate actions

                      In case of trading stocks, there are both expenses and some positive moments. For example, cash dividends, because a trader acts as a shareholder with the right to vote at the company’s meetings (for this, a trader has to fulfill some certain conditions). However, in most cases, trading is speculative and has no goals to receive dividends or to take part in shareholder meetings.

                      One should know that there are some restrictions in trading. Not all stocks are available for credit sale; sometimes, there is no access to open a short position, especially if a trader hasn’t got this asset.

                      Trading CFDs

                      Now it’s time to talk about Contracts for Difference. In this case, brokers usually provides bigger leverage values than for trading stocks. Everyone decides for themselves whether it’s good or bad, but increased leverage values allow traders to expand the list of available trading instruments.

                      An opportunity to trade, both buy and sell, without any restrictions. If a trader buys some trading instrument, but the instrument price falls contrary to expectations, CFDs offers an opportunity of hedging. Trading Contracts for Difference doesn’t imply buying/selling a base asset. Quotes of CFDs and base assets are usually the same, but sometimes there may be 1-2 pips difference due to the internet connection speed. CFDs can be traded through “Forex” terminals, which are usually provided for free. However, trading hours for both CFDs and base assets are the same. The minimum contract size for CFDs, unlike stocks, is 0.1 lots, while the maximum size is limited only by opportunities traders have.

                      Read more at R Blog - RoboForex

                      Sincerely,
                      The RoboForex Team

                      Comment


                      • How to Trade with Leverage


                        What is Leverage

                        Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.

                        Leverage in Forex

                        Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to move the money elsewhere.

                        How to Get Leverage

                        A broker will grant you leverage once you deposit your own funds on your account with that broker. Those funds are called margin, and they act as collateral for the loan money you get from the broker. Every broker has its own minimum deposit limit; in many cases, it is as little as $10. Some even don't require any: you just get a welcome bonus, 'free money' that acts as margin.

                        Leverage and Expenses

                        When trading with a broker, you as a trader always have to pay commissions on every trade you make. The commission or fee may be priced in spread or may be paid apart. Besides, when rolling a position overnight, you will have to pay the swap. Without leverage, those fees can be barely seen in the statement, but when you do use leverage, they become a few times larger. Let's assume you open a USD/JPY trade with a 1:1 leverage and a $1,000 deposit. With the smallest lot size, 0.01, and a spread of 1.90 pips, you get a ridiculous $0.17 fee. Once you have moved to a 100:1 leverage, however, you will be able to open a 1-lot position, and, considering this, the fee will increase to as much as $17.48. Thus, larger leverage leads to larger expenses.

                        Advantages of Leverage

                        Leverage is so much popular in Forex because, without it, you won't earn as much in Forex as in stock market over a certain time frame. Leverage increases the capital you can operate, thus boosting your performance and ROI. Look at the above example: suppose you opened a EUR/USD trade on May 1 and closed it on may 31; this would have yielded you 1.10% profit. With Tesla, you would have earned nearly 14 times more. That's why, if you don't use leverage in Forex, you don't want to trade Forex at all!

                        Leverage Risks

                        Unfortunately, not every trade results in profit. Sometimes, you will certainly have losing trades, and in this case the leverage will magnify your losses. Say, you went long on EUR/USD with a $1.200 deposit, the price is 1.1200, and your lot size is 0.01 (micro lot), each pip thus costing $0.10. Then the price fell to 1.190, and in case you decide to close your position, your loss will be as little as one dollar! With 100:1 leverage, this would be a different story. You would have most likely gone one lot, and a 10-pip fall will now cost you as much as $100. Your profit and loss size, therefore, is strictly bound to the leverage size; with more leverage, you earn more and you lose also more!

                        Read more at R Blog - RoboForex

                        Sincerely,
                        The RoboForex Team

                        Comment


                        • Types of Financial Instruments


                          On financial markets, no matter when, while working there or just getting to know them, investors will surely face such things as financial instruments. What are they? We’ll paint it in details.

                          Financial instruments

                          Financial instruments imply a wide range of terms and definitions. It’s very easy to see how numerous they are: they include a category of banking tools, a group of market assets, and a lot of other financial operations that many people have heard of, but only few have really seen and used them.

                          All financial instruments can be roughly divided into two main groups: the first group is available to everyone without any exceptions, while the second one requires particular knowledge and skills. As a result, the first group will contain credits, loans, bank deposits, and leasing.

                          Credits and loans

                          Credits and loans are the most widespread financial instruments for citizens. The only thing that may really compete with them is a bank deposit. A credit is an operation when a lender grants money to a borrower at a certain interest. The money, of course, is subject to return according to the agreement. As the years go by, global lending terms are getting “milder”, because banks are competing to retain customers, thus offering them better conditions. However, in developing economies it doesn’t work this way: in most cases, the rate on credit is a primary source of banks’ revenue.

                          Bank deposits

                          Bank deposits are another widespread financial instrument, which doesn’t imply any in-depth knowledge. In this case, a bank acts as a borrower and pays interests to a lender (an individual) for using their money after a specified period of time is over. The deposit rate is calculated based on the value of the country’s key interest rate, but sometimes there are other possible options.

                          Leasing

                          Leasing is a more complicated financial instrument, but it’s quite available for citizens. Leasing agreements have 3 parties: after concluding an agreement, a lessor gets a long-term asset, a lessee undertakes an obligation to pay money on account of debt repayment, while a distributor of a property or equipment sell their products.

                          Now let’s talk about the second group of financial instruments, which is related to trading on financial markets and speculations of different types. In this case, speculations mean investment in high-risk assets with a possibility of a large income.

                          Stocks and bonds

                          So, what are stocks and bonds? A stock is an ownership share. After buying stocks on financial stock exchanges, an owner is guaranteed the right to receive dividends. A bond is an issued security similar to a stock, but with the attached right to receive its nominal value or money, or their equivalent within the time specified. A bond is a debt security. When it comes to risk, stocks are considered more risky financial instrument, while bonds – more conservative.

                          Futures

                          Then come derivative instruments. In other words, these are assets that are based on a basic concept, but the instruments themselves are pretty specific tools. Futures are derivative financial instruments based on the SPA of an asset (stocks, good, etc.), and when entering into the agreement parties agree only on the price and the delivery date. Other parameters are usually quite standard and defined by specifications. Futures are trade offers, which are traded on the market on a regular basis.

                          Read more at R Blog - RoboForex

                          Sincerely,
                          The RoboForex Team

                          Comment


                          • How to Use Stop Loss and Take Profit: Learning to Place Orders to the Charts


                            The Stop Loss and Take Profit orders act as insurance, being reverse orders in essence. If, for example, a pair was bought, when an Stop Loss or a Take Profit is triggered, a reverse trade (selling) is carried out, locking in profit (if the TP is triggered) or Loss (if the SL is triggered).

                            What is Stop Loss and Take Profit?

                            A Stop Loss (SL) is a protective order that limits possible losses of the trader in an open position. It automatically closes the trade when a certain level or amount of losses is reached. A Stop Loss is placed either to limit losses or to lock in profit. In the latter case the order is placed in the profitable area.

                            A Take Profit (TP) is an order locking in profit without the trader’s participation. The order automatically closes the trade when the price reaches a certain level.

                            Both Stop Loss and Take Profit must be placed in accordance with the trader’s strategy. For your trading to be stable and successful, these orders are obligatory. The Stop Loss minimizes losses and enhances risk management.

                            Almost all trading strategies include the use of an Stop Loss and/or a Take Profit. Each trader has their own criteria of money management (MM) that tell them how much they can afford to lose in each trade. This is the strategy telling where to place an SL and a TP.

                            How to place a Stop Loss?

                            The trader defines how much they can lose, according to the MM, if something goes wrong. The strategy tells them where the Stop Loss should be.

                            Placing Stop Loss and Take Profit in a Pin Bar strategy

                            The trader is using the Pin Bar strategy. At the top of an ascending impulse, there has formed a Pin Bar pattern, and the trader is planning to open a selling trade. In this case, an Stop Loss will be placed behind the maximal value of the signal candlestick. The landmark for a Take Profit is the nearest support level. The possible profit to loss ratio in this case is 3:1. In the first picture, you can see where the SL and TP must be placed by the trading strategy.

                            https://blog.roboforex.com/wp-content/uploads/2020/02/stop-loss-and-take-profit-2.png

                            The Stop Loss is usually calculated in points from the entry to the trade, accounting for the sum of affordable losses, expressed in the basic currency of the deposit. The trader must calculate the price of a point and then place the volume. For example, the Stop Loss is 40 points, the available loss is 100 USD; 100 USD/40 pips = the price of a point is 2.25 USD. Hence, the size of the trade is 0.25 lot.

                            With risk management, the trader can control risks. For example, if they receive a signal with a profit to loss ratio of 1 to 1, the trader should think twice before entering this trade. An optimal profit to loss ratio is no less than 3 to 1.

                            Placing Stop Loss and Take Profit in a Pin Bar strategy - 2

                            In the picture, we can see a complete Pin Bar, and if we calculate the trade by the strategy, we will see that the nearest support level is as far away as the Stop Loss, which gives a 1:1 ratio. So, we can filter out this signal as it does not comply with the MM.

                            https://blog.roboforex.com/wp-content/uploads/2020/02/stop-loss-and-take-profit-3.png

                            How to place Stop Loss and Take Profit automatically?

                            At present, there are a lot of programs for the trader to live easier. While before the Stop Loss and Take Profit were to be placed manually, and if they were to be changed, the trader had to modernize the order in several steps, nowadays, the things have become much simpler. It is enough to left-click the order on the chart and drag it to the desired price level. Depending on the direction in which the order was moved, an SL or a TP will be placed.

                            There are scripts and expert advisors that automatically place the Stop Loss and Take Profit levels by the set criteria for each new order. On the Net, you can find an advisor called Auto-MM with a short user guide, which calculates the trade volume and automatically places the Take Profit and Stop Loss.

                            Read more at R Blog - RoboForex

                            Sincerely,
                            The RoboForex Team


                            Comment


                            • RoboForex: upcoming changes to the trading schedule in view of the Christmas and New Year holidays


                              We are informing you about the upcoming adjustments to the trading schedule during the Christmas and New Year holidays.

                              This schedule is intended for informational purposes only and may be subject to further amendments.

                              MetaTrader 4 / MetaTrader 5 platforms

                              Schedule for trading on DE40Cash
                              • 25 December 2023 – no trading
                              • 26 December 2023 – no trading
                              • 1 January 2024 – no trading
                              Schedule for trading on CFDs on US stocks
                              • 24 December 2023 – trading stops at 7:00 PM server time
                              • 25 December 2023 – no trading
                              • 1 January 2024 – no trading
                              Schedule for trading on CFDs on US futures
                              • 25 December 2023 – no trading
                              • 26 December 2023 – trading starts at 10:00 AM server time
                              • 1 January 2024 – no trading
                              Schedule for trading on CFDs on Metals, CFDs on Oil, and CFDs on US indices
                              • 25 December 2023 – no trading
                              • 26 December 2023 – trading starts at 10:00 AM server time
                              • 1 January 2024 – no trading
                              • 2 January 2024 – trading starts at 10:00 AM server time
                              Schedule for trading on other instruments
                              • 25 December 2023 – no trading
                              • 26 December 2023 – trading starts at 10:00 AM server time
                              • 1 January 2024 – no trading
                              • 2 January 2024 – trading starts at 10:00 AM server time

                              R StocksTrader platform

                              Schedule for trading on GER40
                              • 25 December 2023 – no trading
                              • 26 December 2023 – no trading
                              • 1 January 2024 – no trading
                              Schedule for trading on US stocks, CFDs on US stocks, ETFs, and CFDs on ETFs
                              • 24 December 2023 – trading stops at 7:00 PM server time
                              • 25 December 2023 – no trading
                              • 1 January 2024 – no trading
                              Schedule for trading on CFDs on Metals, CFDs on Oil, and CFDs on US indices
                              • 25 December 2023 – no trading
                              • 26 December 2023 – trading starts at 10:00 AM server time
                              • 1 January 2024 – no trading
                              • 2 January 2024 – trading starts at 10:00 AM server time
                              Schedule for trading on CFDs on US futures
                              • 25 December 2023 – no trading
                              • 26 December 2023 – trading starts at 10:00 AM server time
                              • 1 January 2024 – no trading
                              Schedule for trading on CFDs on EU and UK stocks and indices
                              • 25 December 2023 – no trading
                              • 26 December 2023 – no trading
                              • 29 December 2023 – no trading on CFDs on DE and UK stocks
                              • 1 January 2024 – no trading
                              Schedule for trading on other instruments
                              • 25 December 2023 – no trading
                              • 26 December 2023 – trading starts at 10:00 AM server time
                              • 1 January 2024 – no trading
                              • 2 January 2024 – trading starts at 10:00 AM server time

                              Please take note of the above amendments to the trading schedule as you plan your trading activity.

                              Sincerely,
                              The RoboForex Team

                              Comment


                              • Join the grand promotion for Partners with a total prize pool of $1,000,000


                                Let us remind you that all RoboForex partners can participate in our grand promotion and win cash prizes.

                                RoboForex Partner Promotion Overview:
                                • RoboForex's most significant promotion of the year for partners.
                                • Every month, 60 winners have the chance to earn up to $15,000 for their outstanding results.
                                RoboForex Partner Programme
                                • Strong industry-leading partner program with high commissions to attract clients for your growth.
                                • From June 2023 to March 2024, all RoboForex Partners are eligible to win cash prizes through automatic monthly coupon distribution during this promotion.
                                Winning Criteria
                                • The market will determine the winners.
                                • 60 winners determined by the closest mathematical match of coupon numbers to selected stock combinations' closing prices on the first Friday of each month.
                                Earn with RoboForex and receive prizes!

                                Become a Super Partner!


                                Sincerely,
                                The RoboForex Team

                                Comment

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