A take profit order is an instruction to a broker that a profitable trade be liquidated once the price of the asset being traded has reached a specified point. This type of order is employed to lock in profits rather than holding on to the position and risking a reversal.
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Technical analysis is a school of market analysis that studies the internal dynamics of an asset’s price action with a view to forecasting its future movements. Technical analysts presuppose that everything that needs to be known about a given asset has already been priced in, they also take as a given that trends repeat themselves and that market participants behave similarly in similar situations. For these reasons they focus exclusively on applying mathematical tools to historical price action and studying chart patterns in order to determine whether an asset is looking bullish or bearish.
A technical indicator is a mathematical tool applied to the historical price action of an asset in order to generate possible buy and sell signals.
A tick is simply the difference between the current market price and the next price to be quoted. This is not a fixed amount as the next price can vary greatly from the current price, depending on available liquidity.
Trade balance is an economic indicator that looks at the changing balance, on a month by month basis, of the goods and services imported and exported by an economy. A negative trade balance indicates that the country in question is running a trade deficit, meaning that it is importing more than it is exporting. A positive trade balance indicates that the economy in question is running a trade surplus, meaning that it is exporting more than it is importing. The reduction of a deficit or the extension of a surplus is considered positive for an economy.
Trailing stops are stop orders that dynamically adjust to recent price action, rather than statically awaiting to be triggered by price swings. For example, a trailing stop for a buy order will allow the price to rise but will only close the trade if the price drops by a certain percentage. Similarly, a trailing stop for a sell order will allow the price to drop and will only liquidate the position if the price rises by a certain percentage.
A trend is simply a pattern of either bullish or bearish price action exhibited by an asset. This happens when regardless of its short-term highs and lows the price still seems to be moving in a generally upward (bullish) or downward (bearish) direction.
Trend lines are plotted over recent price action in order to identify the direction of the underlying trend. Bullish trend lines are drawn diagonally over recent highs and bearish trend lines diagonally over recent lows.
The foreign exchange market is open 24 hours a day, 5 days a week. This is one of its most attractive features as it allows traders from all across the globe to participate whenever they want. Market hours are divided into three broad trading sessions. The Asian session (which also includes New-Zealand, Australia, and Eastern Europe), the European session, and the North American session. Below you will find a table of the opening and closing hours. These hours change slightly when daylight savings time is observed.
|Session||Main Market||Time (GMT)|
|Asian||Tokyo||11 pm – 8am|
|European||London||7am – 4pm|
|North American||New York||12pm – 8pm|
For more detailed information read please see The Sun Never Sets on Forex Traders.
A country or economic region is said to have a trade surplus (i.e. positive trade balance ) when it exports more goods than it imports.
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Leveraged trading in forex, derivatives, precious metals, CFDs or other off-exchange products on margin carries a high level of risk to your capital. You do not own, or have any rights to, the underlying assets. Trading is not suitable for everyone and may result in losses greater than your deposits. You should only trade with money you can afford to lose. Past performance is no guarantee of future performance and tax laws may be subject to change. 31FX is not a financial advisor and all services are provided on an execution only basis. Please consider our Risk Disclosure Statement and legal documentation to ensure that you fully understand the risks involved in light of your personal circumstances before you decide whether to acquire our services. We encourage you to seek independent advice if necessary. 31FX is a registered brand name of JRV Market Ltd with registered address, 3rd Floor J&C Building, PO BOX 362, Road Town, Tortola, BVI VG1110