Direct Broker - Trader Contact Basics

Through the wide introduction of different technologies in the forex market, the direct contact with a broker has been gradually removed. However, it is not completely eliminated and this requires you to get to know some basics when you have to deal personally with a broker in order to get the most efficient and error free transaction execution.

When you ask for information on the current price of a particular currency pair, you should specify the pair itself and the number of lots you wish to trade. When you specify the transaction you want to execute, be it buying or selling, you will typically have no more than 5 seconds to respond. This is so since the market is volatile and the price of currency pairs changes quickly. Once a change has occurred the broker will inform you and a new price quote may be asked.

If you don't provide the broker with your decision, then the broker will indicate in a way (e.g. "done") that your trade has been completed. After this, you can specify an order you want to be filled, such as a stop-loss order that specifies the limits, which if reached the pair will be sold or purchased.

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