A to Z of Forex robot for dummies
If you want to trade online with the Forex market and you would like to use a Forex robot to help you to maximize on the benefit of being able to make currency trades 24 hours a day, then there are some vital terms that every Forex trader should know. We will call these terms the A to Z of Forex and you will probably need most of them when you are configuring your Forex robot software.
You should first be aware that when you are buying currency, there are two prices given. The bid price means the cost for you to buy from the Forex broker and the sell price is the amount that the broker sells the currency to you. The spread is the amount between the bid and sell price of the currency. Remember that this is the way that the brokers profit from your trades.Candle chart The spread will change throughout the day and week to accommodate the risk that is involved at the time. When you are configuring your robot to buy you, will need to have an idea of the spread so you can plan accordingly.
The lot size is the amount of the currency pair that you will be buying. Be careful because this does not mean 1 unit but could mean up to thousands of dollars per lot depending on the value of the currency pair. The lot should be set up carefully with your Forex robot to ensure that you do not make the mistake of investing everything at once.
The take profit level is just the price that the stock will reach in a favorable position before you want the Forex robot to close the deal. The sell limit or stop loss is the opposite of the take profit level. This ensures that you do not lose too much money as the currency price starts to dip unfavorably below the buy price. Be careful that the Forex robot has these values set to make the most of your trades.