There is no doubt that your forex trading experience can be very rewarding. But to be able to maximize your rewards in forex trading you need to be aware that forex trading involves risks as well. Using cutting-edge technology, FX Pro BITcoin provides you with the tools to manage these risks and to capture and take advantage of trading opportunities.
It is FX Pro BITcoin's commitment to provide you with the best price available in the market at any point in time and to execute your orders at the price that you have requested. But the forex market can be very volatile at times or volumes traded can increase significantly without warning. In these cases, your orders may be subject to slippage.
Slippage occurs when the currency price at which you intended to trade is different from the actual transaction price. Currency prices can change fast and significantly under certain market conditions, such as, when major news comes out.
Let us say, for example, you intend to enter a new trade at the price of 1.4000. At this level, the maximum risk that you are willing to accept is 100 pips from your entry price. If you are convenient with a 1:1 risk ratio, your stop loss level would be at 1.3900 and your take profit level at 1.4100. But, when executed the order, the market had changed and your order was filled at 1.4050, 50 pips above the level you want to enter. At this level, your risk becomes 150 pips away while your take profit is just 50 pips. This slippage in the currency price results in a negative risk-reward position, not 1:1 as you initially intended.
At FX Pro BITcoin, you are in control of the amount of potential slippage you are willing to take on your orders. In fact, you have the option to choose zero slippage, that is, you can tell FX Pro BITcoin not to permit any slippage, however small. When you opt for zero slippage, FX Pro BITcoin will execute your order only when the price is exactly what you requested. You may also indicate a range of slippage that you are willing to accept. This will increase the chances that your order will be executed. In this case, FX Pro BITcoin will execute your order at the best available price within the ranged you have specified.
The forex market has lower levels of liquidity and trade volume during weekends as most banks or other financial institutions are closed. With less liquidity, the forex market can be more volatile and unpredictable.
The quoted hours at FX Pro BITcoin are from Sunday 5:15 PM (EST) through Friday 4:00 PM (EST). Depending on liquidity, the open or close times may change.
FX Pro BITcoin updates rates just before it is time to open. It is during this time that orders that were held over the weekend are executed. New orders may be placed or previous orders may be canceled or modified as soon after the open.
It is important to note that the opening prices on a Sunday are not necessarily the same as the closing prices on a Friday. The prices could be close but they could significantly differ. Significant "gapping" is likely to happen in the event of major market shocks that affect the public's expectations about currency values.
If you wish to hold your positions over the weekend, take note of the aforementioned weekend risks. If you are not comfortable with the potentially high volatility of the forex market over the weekend or with the possibility that a market gap occurs, you can always choose to close existing orders and positions before the weekends.