What are Live Forex Trading Rooms?
Live Forex Trading Rooms or Live FX Rooms are online live streams offering current information that relates to trading systems and concepts / strategies directly appertaining to currency pairs or foreign exchange instruments.
Live forex trading rooms are often made up an educator and students, some include software to trade with and some do not. The best way to learn how to trade profitably is to watch a live trader taking real trades in real time.
The direction is either short / sell (down) or long / buy (up).
The Stop is the price or distance in pips that you set in case the trade goes in the wrong direction and this stop order will close your trade at or near the price you set. The only reason you would not get stopped out at the exact price you set could be due to what is called “Slippage”. This is a movement of price around the price you set at which your stop order may get filled by your broker in the market. Sometimes your stop order gets filled at the exact price and sometimes due to market volatility it can be filled at beneath or above your stop order price. Sometimes you can benefit from slippage in favour of your trade direction and sometimes you can also lose a little.
Guaranteed stops allow you the peace of mind that there will be no slippage and any slippage encountered in your trade will be covered by your broker. Not all brokers offer guaranteed stops and some that do will charge you extra on your trade if the stop is hit or just for having it guaranteed. You can use non-guaranteed stop loss orders but most will as above attract slippage.
Trailing Stops are also used which act in the following way. Let’s say for the example that you have bought the EURUSD long and your trade has moved up nicely from 1.04500 to 1.04700 and you may have a target take profit price of 1.04950. At this point, trailing stops would move up to lock in profit above your breakeven price and set at a level you predetermine in your broker platform or manually move yourself in an active manner whilst managing the trade. This trailing stop method can be very useful but we would always suggest that you give your trade room to breathe!
The Take Profit or Target Price is the price at which you wish to exit the trade with profit. Your target exit should be predetermined before entering the trade. You should always know where you intend to exit. Again. Slippage can be encountered in both stop loss orders and take profit limit orders. Basically, you can encounter slippage when you buy or sell or close or enter a position.
The Entry Price or Entry Range is the price at which the trade would identify is the right price to enter. If a range is given, then it is down to the individual to decide at which point they wish to enter. Some wish to maximise profits and actively manage their trades and other traders decide to set and forget the trade by entering the orders and letting them play out in the market if filled by price movement.
Timeframes can be based on how long the trade is expected to take to play out and be based on the chart timeframe the live forex trade has been taken from. Sometimes the live forex trader will give an expiry time meaning once this time has passed the trade could no longer be live, active or due to play out in price movement. This can happen when forex news is released or markets open or close which makes market conditions and liquidity more volatile.
We hope you have gained some insight into the types of information you should and can expect to receive from a live forex trading room. At Rikard Capital, our client base is made up of many different types of people from experienced traders to the new beginner. We help all beginners as much as we can.
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If you have benefited from reading this free blog post about live forex rooms, then consider what you could learn by using a live forex room daily. By also interacting with a company and forex trader that understands the journey you are on, you should hopefully also benefit from being able to skip the mistakes that others before you have made!