3 Steps Of A Trade (Step #3 Exit Order)

Forex Exit Strategies: Tricks on Setting Limit Orders:

Forex exit strategies and exiting a trading position at the right time and price is arguably more important than your entry order. Because only when you exit, you lock in and confirm your profit. Choose the best currency pairs and the best times to trade.Today, let’s talk about getting out, WITH profit. By paying attention to a small trick when setting limit exit orders in your long-term trades.

There are many ways to calculate your Forex exit strategies. They highly depend on your trading time frame, your account’s margin and on the market sentiment in general.Identifying Limit orders or Profit Taking Levels is one of them. These are the areas you calculate to get out of your position and manage your Forex exit strategies when the market prices reach your target.

Limit Orders

Traders usually use market orders to exit trades with a big profit. If you use a limit order while you are going long, then your limit order will be higher than the market price.On the other hand, if you go short with a limit order, then your limit order will be below the market price. Imagine a limit order like a finish line. Your trades will be directly closed every time the market price crosses your limit orders.

Put bull exit orders below obvious psychological round numbers (ex: 1.50000, etc...) and above bearish psychological numbers, support and resistance areas. Most of time big banks on purpose do not go to these areas knowingly that a lot of traders are TRAPPED in these areas.