Saturday, January 03, 2009

Risk Management & TRADING STRATEGY

1.Stop Take Profit & Loss Order
Stop Loss is a loss limit that we are willing responsibilities.
Take Profit is the limit of benefits we want to take.

2.Pending Order
Buy Stop is the position of buy orders above the price or the price of running time.
Buy Limit order is the position under the cheapest price running.
Sell Stop the Sell order is under the price running.
Sell Limit order is a Sell position above the price running.

3.Hedging/Locking
Hedging / Locking measure of trade in commodities is taking the position in market A commodity that contrary to the position of the physical in market.
Position in market have physical goods with the transaction LONG position.
A position in market commodity goods do not have a position with the transaction short.
Hedging / Locking in the trade measure Derivative 2 is taking the position (open buy and open-Sell) opposite in 1 product derivatives contract.

4.Averaging Position
Is to open a new position in accordance with the position long as the prices move in line with previous predictions.

5.Holding/Floating
Is holding the position despite any direction when the opposite direction desired.

6.Hit & Run Trading
Is a short trading price fluctuations by using a fast enough time on certain trade and take profits in the period of less than 2 hours.

7.Cut Loss & Switch / Reverse Position
Cut Loss means closing the position that because the price moves opposite to avoid greater losses.
Switch / Reverse is the direction turnover with close positions (Cut Loss), which are losers because the price moves contrary to the predictions, then open a new position to follow the price moves opposite to the expectation that the position of both the benefits will be greater than the first position, which is in the cut loss


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