How to take Partial Profits

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One way in which traders are able to stay in the market with a profitable position and hang on for a potentially larger move is to take partial profits on the overall position. At Currency Traders Club how to take partial profits is taught. Of course, taking partial profits requires the capability on multiple lots–at least two. The idea is that as price move in favor of our position, we take profit on just a portion of our total position.

Whenever we`re taking partial profits, we need to modify the size of our stop-loss and other take profit orders to account for the reduction in our total position size.  Some online brokers offer a position-based order-entry system, where our order size automatically adjusts based on any changes to the overall position.

There`s no practical difference on our margin balance between the two, but at Currency Traders Club we like the idea of closing out the lots with the most profit.  The key here is that we`ve averaged into a position, and the market needs to reverse beyond our average for us to realize a profit under either system.

Also Study,

Calculating your profit In Forex Markets

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