More Sophisticated Strategies, If Done Properly
Every day, the Foreign Exchange market is full of trading opportunities. Currency trading never rests, as deals are conducted 24 hours a day, all over the world. Unfortunately, most traders do not have the ability to watch the markets continuously around the clock, so they miss many trading possibilities. MG's advanced trading platform offers several tools, such as the If Done Order, to help its client-traders plan out their strategies and leave orders for the MG dealing desk to execute them while the client-traders are away from their computers. Whether a trading possibility occurs at 3 in the afternoon or at 3 in the morning, IF DONE ORDERS offer traders the ability to take advantage of these opportunities.
Our advanced trading platform offers several tools to help its client-traders plan out their strategies and have the dealing desk execute them while the client-traders are away from their computers. Whether a trading possibility occurs at 3 in the afternoon or at 3 in the morning, IF DONE ORDERS offer traders the ability to take advantage of these opportunities.
An IF DONE ORDER is planned in advance but only activated upon execution of another order. In other words, it is an order that is sequentially activated (not by a rate) but by the execution of another order upon which it is contingent.
Let's look at one example of how an If Done Order could be used in trading the USD/JPY, as demonstrated below…
In the late night, USD/JPY is trading at 105.00. You believe that 106.00 is a very strong resistance level, which will not be easily broken. Furthermore, you also believe that when the 106.00 level is first tested, there is a good chance USD/JPY will retrace at least 50 pips to approximately 105.50. The problem is, you do not know when this movement will occur. If you were able to watch the market 24 hours a day, then you might catch such a movement. However, now, you don't have to watch the screen because you can leave an order to buy yen at 106, and if done then to sell yen at 105.50, specifically in that sequence.
An if done order will only become active when the order to which it is attached is executed.
It is very important for traders to fully understand the trading platform they work on. DealStation™ offers easy to use features like the IF Done Order and OCO, which can accommodate more flexible trading strategies.
These articles are designed to help traders understand the unique benefits of trading with DealStation. Articles contain hypothetical examples that have been created for illustration purposes only.
The opinion of the writer does not necessarily represent the view of MG and must be considered as an opinion and not fact.
