The keys to effective risk management

Global Provider of Fx Signals – The keys to effective risk management by FXPremiere Group Analysts

The keys to effective risk management

The keys to effective risk management for day to day trading the Forex Markets.
Proper risk management is essential in the world of Forex trading. There are a number of things you can do to ensure that you manage risk effectively:
• Invest an amount of funds that you would be prepared to lose completely, should the market move in not the direction you thought.
• Invest in a number of assets in order to spread your risk. For example, often invest in CFD’s to manage the risk from other positions they have open currently.
• Trade according to a strategy. Try to refrain from placing trades on impulse and pay attention to socio-political events.
• Carefully use Stop Loss, Trailing Stops and Take Profit orders to minimise losses.

The keys to effective risk managementStress-free trading

Live trading in real market conditions can often cause much stress, especially to novice traders. Asset prices change by the millisecond and the market often moves in a manner that is hard to predict. FXPremiere helps by sending out Daily Forex Signals via sms and email for major pairs.
Some level of stress when trading is justifiable and expected, especially if it leads to more calculated decisions and more effective risk management. Too much stress, however, may trigger spontaneous decisions that could damage your strategy.
One of the best ways to deal with the stress associated with trading is to turn your strategy into an signal algorithm, however fxpremiere,com has done just that for you. Our visual strategy allows you toput sms and email alerts on your trading platform without the use of complex coding language. The benefits of algorithmic trading are many, as it reduces the time you spend monitoring the capital forex market, minimises mistakes, prevents you from placing trades on impulse, and increases the accuracy of your trades since all calculations are carried out by algorithms.

Manage Your Desired FX Account Leverage

At FXPremiere Groups Partners you can trade with high or even low leverage accounts, depending on the predefined leverage set for each indicie your Total position value is at and ‘Equity amount.’ You can control your ‘Equity’ by depositing or withdrawing funds amicably.

Examples:

If you deposit $100,000 [your equity is $100,000] and buy Crude Oil worth $100,000, then you are trading with a leverage of 1 [no leverage]. Please note you would still pay the night premium for any positions held overnight.

If you deposit $20,000 [your equity is $20,000] to Crude Oil worth $200,000, then you are trading with a leverage of 10. As before, the night premium pays for any positions held overnight.

Set ‘Close at Profit’ [Limit] or ‘Close at Loss’ [Stop loss] price levels

Set the price level your position is to close if the capital market turns vs you. A stop loss does not safeguard your position will close at the exact price level you specify.

  • Instrument – The FOREX currency pair or underlying asset of the CFD product to be traded.
  • Country Juristiction – The country that the equity or bond.
  • Lot size – The lot size traded on each platform.
  • Standard Spread – The difference between the BID & the ASK price.
  • Leverage – The usage of margin to trade on a larger base.
  • Margin Per Lot – The required margin to open a single lot size.
  • Increment – The minimum price movement for each instrument.
  • Overnight Interest Sell/Buy – The overnight interest in daily % terms for each instrument.
  • Trading Time – The time that FX trading is available for the an instrument.
  • Quoted Months – The months of the futures contracts that quotes on its MT4 platforms.
  • Exchange – The FX exchange of the underlying asset.
  • Units – The unit that each lot size is quoted in.

Forex Spreads

    1. All Forex Spreads are Over Market.
    2. FX Standard Spreads are as stated under Normal Market Conditions.
    3. Gold & Silver spreads may be wider than stated from approx 22:00 – 02:00 GMT.
    4. Crude & Brent Oil spreads may be wider than stated from approx 22:00 – 05:00 GMT.
    5. Floating: Typical Spreads are an indication only and may widen due to volatile market conditions – The keys to effective risk management.
    6.  Option Spreads show typical bid-offer spreads for 1-month at-the-money options under normal market conditions.

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