Forex trading involves buying and selling currency pairs with the aim of making a profit from the exchange rate fluctuations. As a forex trader, you need to be aware of the risks involved in this market and use risk management tools such as stop loss orders to minimize your losses. A stop loss order is an order to close a trade at a predetermined price level to limit your potential loss. In this article, we will explain how to enter an order with a stop loss in Forex Trader Pro.
Step 1: Open a Trading Account
The first step in entering an order with a stop loss in Forex Trader Pro is to open a trading account with a forex broker that offers this platform. Forex Trader Pro is a desktop-based trading platform offered by Forex.com, a popular forex broker. You need to open an account with Forex.com and download the Forex Trader Pro platform to your desktop.
Step 2: Log in to the Platform
After downloading and installing the Forex Trader Pro platform, log in to the platform with your Forex.com account details. Once you are logged in, you will see the main interface of the platform with various tabs and panels.
Step 3: Choose a Currency Pair
The next step is to choose a currency pair that you want to trade. Forex Trader Pro offers a wide range of currency pairs, including majors, minors, and exotics. You can choose a currency pair by clicking the “Quotes” tab in the top menu and selecting the currency pair you want to trade.
Step 4: Enter the Trade
After choosing a currency pair, you need to enter the trade by clicking the “New Order” button in the top menu. This will open the “Order Entry” panel where you can specify the details of your trade.
In the “Order Entry” panel, you need to select the type of order you want to place. Forex Trader Pro offers various order types, including market orders, limit orders, and stop orders. For this example, we will choose a market order.
Next, you need to specify the size of your trade in lots. A lot is a standardized unit of currency trading, and the size of a lot varies depending on the currency pair you are trading. You can use the “Volume” field in the “Order Entry” panel to specify the size of your trade.
Step 5: Set the Stop Loss
After specifying the size of your trade, you need to set the stop loss level. To do this, you need to click the “SL” button in the “Order Entry” panel. This will open a new field where you can enter the stop loss level.
The stop loss level is the price level at which you want to close the trade if it goes against you. You can set the stop loss level at a specific price level or a number of pips away from the entry price. For example, if you are buying the EUR/USD currency pair at 1.2000 and want to limit your potential loss to 50 pips, you can set the stop loss level at 1.1950.
Step 6: Submit the Order
After setting the stop loss level, you need to review the details of your trade and make sure everything is correct. Once you are satisfied, you can submit the order by clicking the “Buy” or “Sell” button in the “Order Entry” panel.
If the price reaches the stop loss level, the trade will be closed automatically, and you will incur a loss equal to the difference between the entry price and the stop loss level.
Conclusion
Entering an order with a stop loss in Forex Trader Pro is a simple process that can help you manage your risk in forex trading. By setting a stop loss level, you can limit your potential loss and protect your trading capital. However, it is important to remember that stop loss orders are not guaranteed, and in volatile market conditions, the price may gap beyond your stop loss level. Therefore, it is essential to use proper risk management techniques and trade with caution.
