In the foreign exchange market, terminals can be considered one of the numerous most reliable and profitable trading tools. They allow the better control of assets by granting you the opportunity to monitor (and apply necessary actions to) a number of positions from a single window; they lower the risks of errors and misinterpretations due to the need to keep up with simultaneous accounts. Especially for a currency trader who’s in the habit of betting odds with multiple positions altogether, terminals are a favorite.
What Are Terminals?
Terminals are trading tools that can assist you in keeping track of your positions once you enter the Forex market; since they organize multiple positions and group them in the same window, trading more than two currency pairs becomes less challenging. In your authority, they can also be used for the placement of orders; among the options are cancelling the other orders, placing stop trails, taking profit, and setting stop losses.
Moreover, since they operate electronically, terminals reward you with the freedom to execute trades faster – and with less room for faults. They can be downloaded online and installed instantly; it’s your preference to have them in your personal computer or mobile device.
A Guide in Trading Terminals
Trading terminals is initially a simple 3-step process; it begins by selecting a currency pair, then, setting two different price levels, and opting for a cancellation order. As soon as one price level (any of the two) is set and filled, the rule goes that the other price level is up for automatic cancellation.
For example, JPY/CHF (or the Japanese Yen and the Swiss Franc) is the selected currency pair; and, your chosen price levels are 0.01 (for a long position) and 0.005 (for a short position). If the goal is to reach a 20-pip movement, the order will be followed regardless of the current trend direction. If the move is headed for the long position (i.e. it is likely at 0.21), the short position (i.e. it is likely at 0.025) will be cancelled automatically.
The Role of the Broker
Although these tools can be downloaded free from the internet easily, it’s suggested for terminals to come from a competent broker. Since currency trading, like all Forex transactions, is associated with risks of losing huge money and causing irrevocable damages to a trader’s career, it’s a plus to have a trustworthy entity on your side.