Orfinex is an experienced and trusted broker that has been providing services to traders since 2008. It allows traders to trade forex, indices, metals, commodities, shares, futures, and cryptos. The broker also allows traders to use four different trading platforms, such as MT4, WebTrader, PMAM, TradeCopier, and the web Orfinix Trading Platform. The educational portal named Orfinex School on the firm’s website has an economic calendar, trading strategies, and other important lessons related to forex trading that traders can learn to improve their trading skills.
Money management is one of the most important concepts in forex trading, which is also explained in detail on the firm’s website. Also, the trading platforms provided by Orfinex Broker contain indicators that will help you execute each of your trades with proper risk management strategies so that your downside risk could be limited. In this article, we will discuss which technical indicators on Orfinix Broker trading platforms you can use to employ risk mitigation strategies in your trading:
1- ATR% Stop Loss: ATR stands for Average True Range, which measures the volatility of the stock or a currency pair over a period of time. You can use any trading platform provided by Orfinex broker to find the ATR and place a stop-loss for your trades. The ATR indicator plots a line chart at the bottom of price action. The line slopes up when the volatility is high, whereas it slopes downward when the volatility is low. At any point of time, the ATR line shows a number that represents the average points of volatility in the market. You can use the ATR% number to place your stop-loss above or below your entry point, depending on whether you intend to go long or short on your trade.
2- High/Low Points You can determine the multiple-day high/low points on price charts and place your stop-loss near these levels for your long or short trades. For example, if you want to go long on a forex pair, you can place your stop loss at the lowest point of the previous two days on a daily chart. However, you need to calculate the position size accordingly, so that you don’t lose too much if the two-day low is too steep.
3- Hard/Trailing Stop Loss
You can set a hard or fixed stop loss that is based on your analysis or your trade size. In such cases, the trading platform by Orfinex broker can help you place the hard stop-loss right at the time of entering your trade. If the market moves in your favor, the MT4 platform allows you to automatically move your stop loss in accordance with the market to lock in your gains.
Conclusion Money management or risk management involves reducing your risk by taking steps, such as employing stop-loss orders, taking manageable trade size, and risking only a small percentage of your account per trade, which will help you keep your losses low while aiming for higher profits. Thankfully, Orfinex trading platforms allow you to effectively employ money management techniques in your trading using various technical indicators and stop-loss order functionalities.