Close to 0 Risk trading

Hi guys,

I am new here and I have got a question that I couldn’t find on google.

If I invest some money in a pair, I set my “Close at profit” at a fair price when the base currency is low but I do not set my “Close at loss”, eventually this will tick back up maybe in hours/days/months/years … but I will get my money back right? Meaning I would have lost nothing?

Is there something I am missing? Maybe something on the lines of ‘If its low for too long, you get charged’…

Sorry for the super newbie question :19:!

Thanks in advance guys!

Unless you have a bottomless pit of money in your account, you could get a margin call before price turns in the direction you want

As Eddieb says, you must remember that you are trading on leverage and therefore your position exposure is possibly far greater than your actual account equity. Your position is constantly marked to market and will be draining your account equity in line with how far current value moves away from your entry level. Once your equity is close to exhaustion you will get a margin call for more funds or your broker will close your position automatically at a loss.

You are correct that prices do frequently cycle and return to earlier levels but if you look at a monthly chart of any currency pair you will see that some levels have remained at peaks/troughs for maybe 10 years or more and have still not been revisited…

But your post heading mentions “trading”. Whilst prices may at some point revisit an earlier level, is this really what you would call “trading”! What would be the point? What is the objective of such an approach that may not actually realise a profit until one is old and grey and inflation has destroyed its value in the meantime and that you have had to maybe feed addition margin to along the way?

If you’d gone long (buy) GbpUsd before WW2 when the exchange rate was $4 or $5 to £1, you would still be waiting 70 years later for price to turn in your favour.

yup thats exactly it, haha though its doable, but the time will never be enough, i mean imagine, 70 -100 years of waiting right! :slight_smile:

Yes you are right :smiley:

I was blind and now I see. Thanks guys!

I wouldn’t say you were blind.

I would be more positive and say that you are investigative, imaginative, creative, and inventive. When starting on the forex road it is sensible to question everything and not just blindly follow in the well-trodden footsteps on the multitudes that went before (most of whom fail or give up). You are clearly thinking broadly about the underlying principles of what you are doing and considering other options than just the “normal”.

[QUOTE=“Manxx;768072”] I wouldn’t say you were blind.".[/QUOTE] lol Just choose your product currency , stock , or index , option , futures any … wisely and trade it , check the rollover , the costs , the risk , the odds , the style of trading and all this is just advice and only comments you can do whatever you want to do