Tips for Trading in Volatile Markets 

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clararobert
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Joined: 12/5/2018
Topic  Tips for Trading in Volatile Markets       Flag »  Reply »
For day traders, trading in volatile BinBotPro markets can be advantageous, but err on the side of caution. Why? Larger swings can lead to massive profits if you guess right or huge losses if you guess wrong.So how can you approach Forex trading during periods of increased volatility? Your options range from small steps like increasing vigilance over your open positions, to the more dramatic like avoiding day trading all together. Here are a few things you should consider when trading volatile markets:

Be Cautious With LeverageIn stable markets, leverage is your friend, helping to increase gains and maximize profits. But in volatile markets, high leverage can be your enemy, resulting in dramatic losses when the market swings against you. That's why you should reduce your leverage when the markets are volatile. Although this can reduce your profit, it will also lower your risk, helping you to avoid losses that can quickly add up.

Avoid Margin Calls Significant market fluctuations can lead to the day trader's worst nightmare: the dreaded margin call. When your positions are automatically closed, your losses are locked in. So what can you do to avoid this? First, it may be beneficial to increase the capital in your trading account. This will help cushion your open positions against the margin call. Additionally, reducing the size of your positions and tightening your stop-loss orders will help limit your exposure to volatile market swings.
  Friday, February 1, 2019 at 4:21:15 AM

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