OctaFX is a popular online trading platform
OctaFX is a popular online trading platform that allows users to trade various financial instruments such as forex, commodities, and indices. One of the key features that sets OctaFX apart from other trading platforms is the ability to earn a floating profit. In this article, we'll take a closer look at how floating profits work on OctaFX and how you can make money with them.
What is a floating profit?
A floating profit is the difference between the price of an asset when you opened a trade and its current market price. For example, if you bought 1 lot of EUR/USD at 1.2000 and the current market price is 1.2100, you would have a floating profit of $100. The profit is said to be "floating" because it is not realized until you close the trade.
How does floating profit work on OctaFX?
On OctaFX, your floating profit is calculated in real-time and can be viewed in your trading account. The platform uses the MetaTrader 4 and MetaTrader 5 trading platforms, which provide a user-friendly interface for traders to manage their trades.
When you open a trade on OctaFX, you can set a take profit and stop loss order. A take profit order is an order to close a trade once a certain profit level is reached, while a stop loss order is an order to close a trade once a certain loss level is reached.
If the market moves in your favor, your floating profit will increase. For example, if you opened a trade with a take profit of $100 and the price of the asset increases by $50, your floating profit will be $50. However, if the market moves against you, your floating profit will decrease and can turn into a floating loss.
How to make money with floating profits on OctaFX?
To make money with floating profits on OctaFX, you need to have a good trading strategy in place. This strategy should take into account market trends, risk management, and technical analysis.
One popular strategy is to use technical indicators to identify trends and entry and exit points. For example, you can use the Moving Average indicator to identify when the market is trending and when it is consolidating. You can then use the Relative Strength Index (RSI) to identify overbought and oversold conditions, which can help you determine when to enter or exit a trade.
Another important factor to consider is risk management. It is important to manage your risk by setting stop loss orders to limit your losses if the market moves against you. You should also use proper position sizing to ensure that you do not risk too much on any one trade.
Finally, it is important to keep up to date with market news and events that can impact the financial markets. For example, economic reports such as the Non-Farm Payrolls can cause significant volatility in the forex market.