The trailing stop-loss is a dynamic procedure when the exit point moves closer to the entry point if the currency moves in the direction favorable to the trader. The trader may also do this as new support and resistance levels are formed as the currency moves in their direction.
The trailing stop decreases the risk if the currency initially moves in the trader's direction but then fails to follow through. The trailing stop also attempts to fix a minimum amount of profit if the rate moves substantially enough for the trader to move the trailing stop to a profitable level.
This review is on one unfortunate thing that may happen to a Forex trader. It is called the requote.
The requote happens when there is a difference between the price you decided to enter a trade by clicking buy/sell and the price on the market when your order actually reaches the broker.
Q: What is Forex ?
A: Forex or Foreign Exchange is the simultaneous buying of one currency and selling of another. In this market currencies are converted by each. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Dollar/Euro or Yen./Dollar.
Q: How do I get started ?
A: If you are just starting out on your forex journey, read some basic of forex trading strategies. Then open a demo account and try demo trading. You can open the demo account with one of our recommended brokers.
Q: How do I get profit in Forex ?
A: Select a currency pair. Buy a currency at a lower price and sell it at a higher price. It is that simple. However, you may lose if the currency you bought has depreciated.