Forex trading has become increasingly popular over the years as a means of generating income. However, before you can start trading forex, you need to know how to add on your trade. Adding on a trade involves increasing the size of a position that you have already opened. In this article, we will explore the steps involved in adding on your trade forex.
Step 1: Determine your existing position size
The first step in adding on your trade is to determine your existing position size. If you have opened a position of 1 lot, for example, you need to know this before you can add on to it. Knowing your existing position size will help you calculate the new position size and the amount of funds you need to add to your account.
Step 2: Decide on the amount to add
Once you know your existing position size, you need to decide on the amount to add. This decision should be based on your trading strategy and risk management plan. You should only add funds that you can afford to lose, and you should avoid overtrading.
Step 3: Calculate your new position size
After deciding on the amount to add, the next step is to calculate your new position size. To do this, you need to use a forex calculator. The calculator will help you determine the new position size based on the amount you want to add, the leverage you are using, and the currency pair you are trading.
Step 4: Place the order
Once you have calculated your new position size, the next step is to place the order. You can do this by logging into your trading platform and selecting the currency pair you want to trade. You should then select the ‘add-on’ option and input the new position size.
Step 5: Monitor your trade
After placing your order, you need to monitor your trade. This involves keeping an eye on the market and making sure that the trade is going in the direction you anticipated. You should also set stop-loss and take-profit levels to manage your risk and lock in profits.
Conclusion
Adding on your trade forex can be a useful strategy for increasing your profits. However, it is important to remember that trading forex involves risk, and you should only add funds that you can afford to lose. Before adding on your trade, you should also have a solid trading strategy and risk management plan. By following these steps, you can add on your trade forex with confidence and increase your chances of success in the forex market.
