News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Wall Street
More View more
Real Time News
  • Heads Up:🇬🇧 BoE Gov Bailey Speech due at 09:25 GMT (15min)
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to learn about how you can become a better trader. Register here:
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here:
  • Heads Up:🇬🇧 BoE Haldane Speech due at 08:30 GMT (15min)
  • Gold Price Rise May Struggle to Continue as the US Dollar Rebounds - #XAUUSD #gold
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.70%, while traders in EUR/USD are at opposite extremes with 72.85%. See the summary chart below and full details and charts on DailyFX:
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.14% Gold: -0.27% Silver: -0.45% View the performance of all markets via
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.15% 🇯🇵JPY: 0.04% 🇪🇺EUR: -0.08% 🇨🇦CAD: -0.09% 🇬🇧GBP: -0.15% 🇦🇺AUD: -0.15% View the performance of all markets via
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.25% US 500: -0.35% Wall Street: -0.36% France 40: -0.40% Germany 30: -0.57% View the performance of all markets via
Exiting a Trade

Exiting a Trade

2010-05-20 20:47:00
Richard Krivo, Trading Instructor

Instructor's Response:

One of the more effective methods for exiting a trade is to employ a Risk Reward Ratio on the trade. By doing so, there is no question of when to exit...the exit occurs when the limit is triggered and you are profitably out of the trade. It is very straight forward and it eliminates any emotion since the stop and limit were put in place prior to the trade ever being entered.
For example, if a trader were to employ a 1:2 Risk Reward Ratio on a trade (the minimum that we would recommend) and a 100 pip stop were set, then a 200 pip limit would be set.  With a 50 pip stop a trader would employ a 100 pip limit and so forth.
Another method that could be employed would involve the trader trading multiple lots. Using this scenario, a trader would open, let's say, three positions on a trade. At a predetermined level of profitability, perhaps +75 pips, one of the lots would be closed thereby locking in that amount of profit. On the remaining lots, the stop would be moved to breakeven...the point at which the trade was entered. Then, should the remaining lots move in the favor of the trader, the stop could be advanced periodically to continue to lock in profit. The worst that would happen on the remaining lots would be that the pair would do an about face and the trader would be stopped out at gain on the remainder of the trade but no loss either.  Should the trade continue in the direction of profitability, the second lot could be exited at perhaps +125 pips, thereby adding to the profit, and the stop could be advanced above breakeven on the third and last lot.
A trader could also simply observe levels of support and resistance. As their trade is approaching levels of significant support or resistance, they could exit all or a portion of their position at that point, or perhaps simply tighten their stops. By so doing, should the pair hit the support/resistance level and retrace, a major portion of the profit would be protected and should the pair breakthough and continue on, the trader would still be in the trade.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.