#### How To Make Money Through Forex – Part 10 ####

OCO ( One order cancels the other order )

This means is that two orders are placed with prices both above and below the current price. When one of the orders is executed, the other order is cancelled.

For example, if the price of USD/CHF has been staying around 1.2435 for some time and you have a feeling it’s going to change soon but you’re not sure which way
it’s going to go, you place an OCO order to buy at 1.2445 or alternatively, to sell at 1.2455. This way, your trade takes off as soon as the currency goes one way or the other. One trade is canceled as soon as the other is executed.

Always check with the broker for specific order information and see is there is any rollover fees involve fo a position held longer than one day.The best strategy is keeping your ordering rules simple.

Rollover charges are determined by difference between the interest rate of the country of the base currency and the interest rates of the other country. The greater the rollover charges will be  if the differential between the two countries interest rate is greater.

Be sure to scrutinizes a prospective broker’s “fine print”
section to be fully aware of all the nuances that a specific broker may impose on a new trader. Looking for the right broker at times may be frustrating as it requires some real work and it is time consuming. Therefore it is best to
test out the demo account of the brokers that you have shortlisted before involving in real money.

Bookmark It

Technorati Tags: foreign exchange, foreign exchange rates, Forex, Forex http, forex opportunity, forex supply and demand, forex trading, fx, invergy forex, inversion en forex, OCO, one order cancel the other, trading style

Tags: foreign exchange, foreign exchange rates, Forex, Forex http, forex opportunity, forex supply and demand, forex trading, fx, invergy forex, inversion en forex, OCO, one order cancel the other, trading style