Leaving a runner in forex is a strategy used by traders to maximize their profits on a successful trade. The term “runner” refers to an open position that has already generated profits but has not yet reached its profit target. By leaving the runner open, traders hope to capture additional profits as the market continues to move in their favor.
To understand how leaving a runner works, it is important to first understand the concept of profit targets. In forex trading, a profit target is the price level at which a trader expects to take profits on a trade. This can be a fixed price level or a percentage of the initial investment. Once the price reaches the profit target, the trader closes the position and takes the profits.
However, in some cases, the market may continue to move in the trader’s favor even after the profit target has been reached. This is where leaving a runner comes in. Instead of closing the position at the profit target, the trader leaves it open in the hopes of capturing additional profits.
The key to leaving a runner is to have a solid understanding of market trends and to be able to identify when a trend is likely to continue. Traders who leave runners open must be willing to take on additional risk, as there is always the possibility that the market could reverse and the profits could turn into losses.
To mitigate this risk, traders often use stop-loss orders to protect their profits. A stop-loss order is an order to sell a position if the price falls below a certain level. By setting a stop-loss order at a level that protects their profits, traders can leave the runner open with less risk.
Leaving a runner can be a profitable strategy, but it is not without its risks. Traders must be confident in their analysis of the market trends and be able to identify when a trend is likely to continue. They must also be willing to take on additional risk and be prepared to close the position if the market turns against them.
In conclusion, leaving a runner in forex is a strategy used by traders to maximize their profits on a successful trade. By leaving an open position that has already generated profits but has not yet reached its profit target, traders hope to capture additional profits as the market continues to move in their favor. However, this strategy is not without its risks, and traders must be confident in their analysis and willing to take on additional risk to make it work.
