Forex Trade over 90 FX pairs via CFDs or spread betting. Spread betting vs spot forex contracts above are subject to our website terms and conditions. Your losses, as well as profits, are magnified when using leverage. Tax laws are subject to change and depend on individual circumstances.
Tax law may differ in a jurisdiction other than the UK. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA.
The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. When entering a trade, how do you choose the point of the stop loss and take profit? Clearly, this decision will have an impact on how profitable your trades are. However, did you know that the placement of youdr exit levels can actually have more of a bearing on your profitability than the decision on which direction to trade?
In the volatile forex market, it is actually true. Given how important this decision is, it is surprising how little thought many traders give to this component of their trade. In this article, I want to explain a quantitative strategy that will help you select stops and take profit levels for maximum profit. I also want to debunk some of the common misunderstanding around risk-reward setups, and show how following poor advice can ruin a potentially good trading system. Why Guessing Stop Losses and Take Profits is a Plan for Failure A trading position will normally exit at one of two points.