I am a new student of Forex and realize both offer buy and sell options, both allow a predetermined price, I know the stop order is not guaranteed and the limit order is. I don’t know when the use of one is more appropriate than the use of the other.
my email is no longer AOL
please send to ttone4@yahoo.com

I assume you know the difference between a market order and a limit order.

A STOP order means you tell the computer what to do, and then you can get up and leave. The computer will send a buy or sell order as if you were there to enter the order yourself.

Of course, you must tell the computer when you want your order to be sent. The STOP PRICE tells the computer when to send your order. For example, it may send it only if XYZ hits 3.05.

BUY 40 XYZ @ MARKET
STOP PRICE = 3.05

The computer that does this automatic trading is not your computer but the central computer where trades are routed. So, you can enter a STOP order and turn off your computer and leave. The central computer will watch the price for you and send your order when it’s time.

Unfortunately, in a fast market, the prices may gap up several points and may jump over your STOP PRICE. The computer doesn’t know if you want to buy the stock on the way up or on the way down, so it will sit there and not do anything if the price jumps through your stop price. In this case, your order is not sent. So, a computer is not as smart as a human. It will only send your order if the stop price is EQUAL to the price of XYZ.

Let’s say that XYZ is trading now at 3.60. You want to buy XYZ if it breaks out above 5.40. Unfortunately, you can’t tell the computer to buy XYZ if it goes above 5.40. You have to provide ONE specific price that will trigger your buy order. So, you better come up with a price that is likely to be hit. You might pick 5.50. So, you would send this order:

BUY 40 XYZ @ MARKET
STOP PRICE = 5.50

You get up and leave. If XYZ starts to move up, it may hit 5.50. And in this case, the computer will send your buy order for you while you’re away.

Let’s look at another example. XYZ is trading around 14.70 and you want to sell your position in case the price drops below 13.12. Again, you can’t tell the computer to sell below 13.12. You must come up with an exact price where you want the computer to send a sell order. So, let’s say you do this:

SELL 70 XYZ @ 13.08
STOP PRICE = 13.10

This is an example of a stop limit order. Once XYZ hits 13.10, the computer sends your limit order.

LIMIT and MARKET orders are sent to the pit where they appear on the market makers’ screen. Market orders are executed immediately, but you may have to wait for a limit order to get filled.

The STOP orders do not get sent to the same place. The STOP order is sent to your broker’s central computer, and it stays there. When the STOP PRICE is reached, this central computer sends your order to the marketplace.

So, if you send a simple stop order to buy at a certain price, the market makers can’t see your order as long as it is sitting there. But if you send a limit order, the traders and market makers will see your order, and it may affect the price.

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my business is online trading of currencies, stocks, options,metals and commodities

Hi

How about Tariq Financial
or Tariq Capital
All the Best!

GarimaBajaj

www.GarimaBajaj.com

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Can you became a millionaire by trading options and how likely is it, compared to stocks, forex, etc.?

Also I know the markets in a slump right now and will probably drop a lot lower, but I want to know for the future.

you can become a millionaire by trading options if you start as a billionaire.

it is very easy to lose money.

anyone can do it.

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hi im 19 and took some loses in forex recently and im fed up with the 50% moves against me way too risky. and the stupid thing is i was compltetly right! i am a stock trend follower and so the eur was in a negative trend and instead of just letting my profits run i had to get all stupid and buy instead trying to predict a bottom I AM AN IDIOT for this i dont know why forex is sooo much different than stocks i think i could do it but i need more practice or something. but options i have better luck with because its following what a stocks going to do and im good with stocks. whats more risky though?

Forex is only more risky because of the 100:1 leverage. But that is also maximum risk and maximum drawown to your account. Leverage is the killer, not forex.

You don’t have to trade at full leverage. De-leverage to zero, and forex becomes tame. So do the profits, but so does the risk. Everybody wants to get-rich-quick, and blows out of their account.

Options are designed to expire worthless, a wasting asset, where you not only have to be right on direction but also on time. You may get it all right once or twice, but the trick is to find something consistent, where one big loser doesn’t wipe out all of your work. Difficult to use stops on premium fluctuation. Difficult to forecast implied volatility.

You can deleverage somewhat to a more sane level by trading forex futures; still a little over-leveraged for me, especially the euro. I get better fills in the futures, and futures are regulated, unlike the forex gaming arena run by banks, by banks rules. I’ve had some forex dealers refuse market orders; what kind of crap is that?

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I am 18 years old and I’m trying to decide which out of either ordinary stock market investing, CFD’s, spread betting or Spot forex I am best to trade as I am a beginner, but have had a couple of years study in all of these investment products in reading and in practice demo account? I am really trying to decide which is best the best option to get started with as I want to create a possible career out of it, but I can’t decode which one to choose. What would you recommend I start with to get started with out of these 4 options? Please, I really need your help/advice. Thanks.

If you are a beginner then individual shares are the way forward – get a year of experience at least before moving to leveraged products like CFDs and spread betting. CFDs and spread betting are both high risk speculative instruments – once you acquire some experience if you’re located in the UK/Ireland/Australia I would go on with spread betting since spread betting and CFDs are basically identical products (but spread betting is tax free in the UK/Ireland/Australia). If in Europe or elsewhere I would stick with CFDs. As for forex, just don’t go there for now – margin trading with forex is too dangerous for starters as forex can have wild swings – if you do nonetheless still want to trade forex I would stick to relatively low leverage say 1:50

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The current limit is 1:400. I think most people know what they’re getting into when take on such a high leverage. With a 1:400 leverage one loses all his money if the investment goes down 0.25%, but the money doubles if it goes up 0.25%, and triples if it goes up 0.5%. It’s common sense that this is risky, and anyone stupid enough to invest all their money in such an obviously risky investment, deserves to lose it all. I find it condescending that the CFTC thinks we don’t understand something that a 4th grader could understand. Such a high leverage should be an option in case someone wants to invest a small percentage of their portfolio with a high leverage. If someone is very skilled at Forex it ought to be their right to see just how high of returns they can get, by trying out higher leverages for some of their portfolio. What are your thoughts?

you do realize you are posting this on a forum filled with people that cannot read more than two sentences and ask things such as "if pelosi pooped in a waffle cone would the liberals call it ice cream"?.. and whose highest level of political debate is.. it was all George Bush’s fault.

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Okay, I know this sounds random, but I’ve always wanted to become as millionaire in my 20s, preferebly age 22 and at the very most age 27 as a back up. Since I was 13 I have looked into various different businesses I’ve been passionate about from property development, stock market investing, forex trading, options trading, CFDs trading, spread betting, iPhone app developing, facebook app developing, internet website entrepreneurship, eBay seller, starting a construction company, starting a hardware/software company, and many more. All of these and many more I’ve been passionate about at one time or another, but I can’t find ANY ONE I’m truly passionate about that could make me a millionaire in my 20s. What Could I do become a millionaire by age 22 or 27 starting now at age 18? Please, I really need someones help or advice as I’m desperate. Thanks.

Becoming a millionaire in your 20′s is extremely unlikely. There are three ways to become a self-made millionaire in your 20′s; 1) Work extremely hard applying a valuable skill 3) develop a new business or product 3) get lucky.

The most reliable way to accumulate wealth is to develop a valuable skill and then work extremely hard applying that skill while spending as little as possible and saving the rest. Many of the opportunities you mention require developing a skill.

A much better goal than becomming a millionaire in your 20′s is to find something useful that you are good at. If you do that, you will have much more financial security that a millionaire.

The greatest financial security in the world comes from having a useful skill. And it can be a wonderful life if you enjoy applying that skill.

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I am a full time US option trader.
Looking for online courses on FOREX
Reputable company,speaker/advisor.

Any advise will be great

The top forex trading companies with top trading platforms and also have easy webinars or on line seminars, live representatives who will be able to explain and help out with any needs or concerns. No Robot systems to talk to either.

http://www.gftforex.com/

http://www.fxcm.com/

Hope this is what you are looking for.

Enjoy your day,

TS

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The old 10% over the long haul does not seem to be true anymore. I’m not interested in day trading, options, forex or other higher risk money vehicles. I’m more interested in stocks and bonds investing without a lot of trading going on.

There was an article on that on the internet just a couple of days ago. Investment gurus were polled and the consensus was about 2% after inflation at the most. Some–a small majority–stuck to the 10%. A few pessimists came in at zero. If the last 10 years is any indication, one is going to have to think outside the box, to get 2%. Let’s face it. There is every indication that the growth years are done and gone as a rule of thumb. The US economy appears pretty well headed the way the Roman empire went. The Roman empire had Nero. We had Bush and now Obama. The Roman empire had its senate and we have ours. A lot of parallels here.

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I am 18 years old and I have been practicing spot-forex trading for several months now with FX Club and I am quite good at it and have learned a lot about currency trading from my demo account and some books and internet article sites on currency & options trading. Its become my passion actually.

I also know something that actually is a secret to FX trading success; the trends are usually long term, lasting from several months to several years meaning you are best to trade for the long term on currency pairs to enjoy the ride of making money. You can’t do this with spot-FX because you are trading on margin and if a trading position is left open too long, you will be wiped out within so long.

What I would like to know is if currency options trading is a good way to trade currency by simple vanilla call & put options as I know that spot-FX is essentially a mugs game? Also is there anybody out there who trades currency options for a living at all? Also, what is an easy to use currency options trading brokerage that can be used by a UK based investor? Please help advise. Thanks.

P.S. Sorry my question is too long.

if you want to trade forex, you need to trade futures. if you don’t have enough money you need to save the money while doing something else while learning more about forex and then trade futures. once you are able to trade futures you could add options on futures if you wanted but you do not need to do that. generally speaking successful option trading is more difficult than than trading futures or stocks. options are never simple vanilla.

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