Como Negociar Forex

Por exemplo, if the price of EUR/USD is 1.2000, it means that 1 euro (base currency) is equal to 1.20 dollars (quoted currency).

2. Types of trades 

The types of trades determine how you enter and exit the market. The two basic types are Ordens do mercado e Ordens pendentes. 

a.     Ordem de Mercado 

A market order is an order that is executed immediately at the current market price. This type of order is used when you want to enter a trade instantly without waiting for specific price levels.

-         COMPRAR – You buy when you expect the price to rise. 

-         VENDER – You sell when you expect the price to fall. 

·        Advantages:

a)     Fast execution of the trade.

b)     Ideal when you want to trade at current market prices.

·        Disadvantages:

High volatility can cause the price to change quickly, so when executing a market order, it may happen that the market immediately moves against you.

Example of a market order:

·        If the price of EUR/USD is 1.2000 and you want to buy this currency pair immediately, you place a market order to buy. The trade will be opened instantly at the available price at that moment (for example, 1.2001).

 

b. Pending Order

·        A pending order is an order that you place in advance at a specific price, and the trade is executed when the price reaches that level.

·        Pending orders are used when you want to enter the market at a specific price that has not yet appeared.

·        A pending order does not guarantee immediate execution but provides flexibility in trading when current prices are less favorable.

There are four main types of pending orders:

1. Types of Pending Orders

Pending orders are divided into four main types: Buy Limit, Sell Limit, Buy Stop, and Sell Stop.

 

a. Buy Limit

·        A Buy Limit is an order to buy at a lower price than the current market price.

·        This order is executed if the price drops to a certain lower level.

·        Usage: This order is usually used when you expect the price to decrease and then reverse and start rising.

Exemplo:

If the price of EUR/USD is at 1.2000 and you want to buy at 1.1980 (lower price), you place a Buy Limit order at 1.1980. If the price drops to 1.1980, the order is executed, and you open a buy trade.

b. Sell Limit

·        A Sell Limit is an order to sell the base currency at a higher price than the current market price.

·        This order is executed if the price rises to a certain level or higher.

·        Usage: This order is used when you expect the price to rise but then reverse and start falling.

Exemplo:

If the price of EUR/USD is at 1.2000 and you want to sell at 1.2020 (higher price), you place a Sell Limit order at 1.2020. If the price rises to 1.2020, the order is executed, and you open a sell trade.

c. Buy Stop

A Buy Stop is an order to buy the base currency at a higher price than the current market price.

·        This order is executed if the price rises to a certain level or higher, indicating that the trend is continuing.

·        Usage: This order is used when you expect the price to continue rising, and you want to enter the trade only after reaching a higher price.

Exemplo:

If the price of EUR/USD is at 1.2000 and you want to buy only at 1.2020 (higher price), you place a Buy Stop order at 1.2020. If the price rises to 1.2020, the order is executed, and you open a buy trade.

d. Sell Stop

·        A Sell Stop is an order to sell the base currency at a lower price than the current market price.

·        This order is executed if the price drops to a certain level or lower, indicating a continuation of the decline.

·        Usage: This order is used when you expect the price to continue falling, and you want to enter the trade only after reaching a lower price.

Exemplo:

If the price of EUR/USD is at 1.2000 and you want to sell only at 1.1980 (lower price), you place a Sell Stop order at 1.1980. If the price drops to 1.1980, the order is executed, and you open a sell trade.

2. What Happens After a Pending Order is Activated?

·        Activation: A pending order is activated when the market price reaches the price you set. If the market price is reached or exceeded, the order is executed automatically.

·        While waiting for activation: A pending order remains in the system until the condition for trade execution is met (i.e., reaching the desired price).

3. Other Orders and Their Uses

a. Stop Loss (SL)

·        A Stop Loss is an order that automatically closes a trade if the price reaches a predetermined loss level. This order serves to protect against large losses when the market moves against you.

Exemplo:

If you open a trade on EUR/USD at 1.2000 and set a Stop Loss at 1.1980 (loss of 20 pips), your trade will automatically close if the price drops to 1.1980.

b. Take Profit (TP)

·        A Take Profit is an order that automatically closes a trade when the price reaches a predetermined profit level.

·        This order is used to lock in profits when the market reaches your target price.

Exemplo:

If you open a trade on EUR/USD at 1.2000 and set a Take Profit at 1.2050 (profit of 50 pips), your trade will automatically close when the price rises to 1.2050.

3. Trading with Lots

On Forex, trading is done in units called lots. Lots determine the trade size, which specifies how much of the base currency is being traded in a given trade. There are different types of lots:

Standard Lot (1.00 lot)

·        A standard lot is the largest trade size in Forex and represents 100,000 units of the base currency.
·        For example, if you are trading the EUR/USD currency pair and open a trade with 1.00 lot, it means you are buying 100,000 euros and selling the equivalent in US dollars.
·        The pip value for a standard lot is usually 10 USD. This means that each price movement of 1 pip will result in a profit or loss of 10 USD.

Mini Lot (0.10 lot)

·        A mini lot is one-tenth of a standard lot, meaning it represents 10,000 units of the base currency.
·        If you trade the EUR/USD currency pair and open a trade with 0.10 lot, you are buying 10,000 euros and selling the equivalent in US dollars.
·        The pip value for a mini lot is 1 USD. This means that each price movement of 1 pip will result in a profit or loss of 1 USD.

Micro Lot (0.01 lot)

·        A micro lot is one-tenth of a mini lot, meaning it represents 1,000 units of the base currency.
·        If you trade the EUR/USD currency pair and open a trade with 0.01 lot, you are buying 1,000 euros and selling the equivalent in US dollars.
·        The pip value for a micro lot is 0.10 USD. This means that each price movement of 1 pip will result in a profit or loss of 0.10 USD.

Pip Value for Currency Pairs Without USD

For currency pairs where USD is not the quoted currency (e.g., EUR/GBP, GBP/JPY, AUD/NZD), the pip value is not directly calculated in dollars but depends on the second currency in the pair and the current exchange rate.

Importante: If your trading account is denominated in a different currency (e.g., USD, EUR), you need to convert the pip value into that currency using the current exchange rate.

Exemplos:

EUR/GBP: If the exchange rate is 0.8500, the pip value for 1 standard lot (100,000 units) would be:

0.0001/0.8500 × 100,000 = 11.76 GBP

GBP/JPY: If the exchange rate is 160.00, the pip value for 1 standard lot would be:

0.01/160.00 × 100,000 = 6.25 JPY

 

How Is Profit or Loss Determined Based on a Pip?

Every Forex trader monitors price movements, which are expressed in pips (a unit of measurement for the market, similar to how we measure height in centimeters; the market moves in pips). Pips represent the smallest possible price changes in a currency pair.

Calculation of Profit or Loss Based on a Pip:

·        1 pip is usually a price change of 0.0001 for most currency pairs.
·        There are two exceptions:

·        JPY pairs: A pip is 0.01 (second decimal place).
·        Gold (XAU/USD): A pip is the first decimal place after the point.

The profit or loss for a 1 pip movement depends on the size of your lot. The larger the lot, the greater the potential gain or loss per pip movement.