Beginners can not easily understand where to start trading. To facilitate this task, we describe the main stages of trading via the Internet.

Step 1. Search for a broker (dealing center)

A broker or dealing center is a market participant that executes orders of a trader.

Today, a huge number of companies performing these functions work in the financial market. To choose among such an amount of the best broker, you should analyze the offered trading conditions, user reviews about dealing centers, the quality of technical support.

It is important to take this step as seriously as possible, since there are many scammers in the modern financial market.

Step 2. Opening an account and depositing funds to it

When the broker is selected, you can open a trading account . After that you will need to deposit money on it. The minimum amount of replenishment depends on the conditions established by the broker.

Sometimes, resellers require customers to pass verification by sending passport data. If there is confidence in the reliability of the broker, you should not be afraid of it.

Step 3. Start of opening positions

When all conditions for opening an account are met, and money is transferred, the trader will automatically gain access to the trade. After this, you can begin to analyze the market, open positions and generate income.

Stage 4. Installing programs for trading

To be able to open trades, a trader must install special trading terminals on the computer. Traditionally, MetaTrader is used for this purpose .

4-th stage – installation of software for trading

Sometimes brokers, trying to bypass competitors, advertise the software developed by them. Do not succumb to such tricks. If new developments were better, the whole world would not use the MetaTrader.

Step 5. Analysis of information about the change in quotations

Before you start trading, it is important to analyze the current situation on the market. It is necessary to choose which methods (fundamental or technical ) for this purpose will be used. Sometimes a combination is used.

Only when the development of the market situation can be predicted , you can go directly to trading.

Stage 6. Opening of trading positions

To open a trading position, you must perform several actions:

Click the “new order” button in the terminal ;
Enter the required volume of the transaction , that is, the amount of currency that will participate in the transaction;
Click the “buy” or “sell” button .

All orders can be divided into 2 types:

1. A market order is based on the value that was established on the market at the moment of its opening;
2. A pending order is opened at a time when the price reaches a certain level in it.

There are several types of pending orders. All of them are described in the table below. It is useful for novice traders to study them carefully, in order to use them later in the work.

Table of different types of pending orders and their brief description:

Pending order type Description of the order
Buy Limit The position is used when expecting a rebound from the support level . This order should be established if the quotes are expected to be reversed after the price reaches the level specified in the order. It turns out that the price falls to the price predicted by the trader, the position for buying currency opens. After this, the cost begins to grow, the trader makes a profit.
Sell ​​Limit This is also an order used in case of a rebound waiting . But in this case, from the resistance level . In other words, a trader puts a pending order at an increase in price, expecting that after reaching a certain level, it will begin to fall. On this trader and earn.
Buy Stop Pending order while waiting for breakdown . It should be used if a sharp upward movement is expected. In this case, the trader expects growth to a certain level to make sure the correctness of the forecast.
Sell ​​Stop This order is used when waiting for a breakdown down .

Stop orders are most often used when trading on news. They allow the trader to verify the forecast and only then open the position. When the position is opened, in the trading terminal the trader will be able to track the profit or loss on it.

Step 7. Fixing the result of the transaction

Any position remains open until the trader decides to exit the market and fix the result. In this case, the transaction can be closed at a loss or a profit.

However, not always the result is fixed by the trader himself. Sometimes the position can be closed without his participation.

The transaction can be closed upon occurrence of one of 3 situations:

1.  The trader decides to close the position and fixes the outcome of the transaction independently.
2.  When the price reaches the Stop Loss or Take Profit levels . The trader independently determines what loss it can sustain or what profit it will be sufficient for. If the price falls to the Stop Loss level, a loss is fixed. If it grows to Take Profit , the order closes with a profit.
3.  The broker closes the position himself, as the loss led to a shortage of funds on the client’s account. Such a case is called Stop Out.

It occurs when the trader was unable to calculate the optimal volume of the transaction. The broker independently establishes the level at which all transactions will be closed. Most often, Stop Out occurs when losses reach 80 % of funds placed on the account.

Having studied the above stages, the trader can gradually achieve success in the exchange trade.

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