The following is a short extract from the course "How To Trade The Futures Market", please click here Trade Futures Course for full details on how to obtain the full text, futures trading simulator along with sample data and bonus trading ebooks package.

Find: Stop market position price used points current below profit open.

Stop orders can be used to open a position or to close a position. When used to open a position they are usually for entering a trade when the market breaks out of a range or makes a new high or low. If they are used to exit a position they are sometimes referred to as a protective stop or a stop loss, as they are used to minimize losses. The advantage of using stops is that you can place them in the market ahead of time and if the market trades at the specified price the order will definitely get filled. The disadvantage is that the fill price and the subsequent slippage is unpredictable (and usually significant). Trailing Stops A trailing stop is the name used to describe the action of moving your stop closer to the current price as the market moves in your favor. Lets say you open a long position in the FTSE and you place a sell stop 10 points below your entry price. The market starts to rise and when you are in profit by 15 points you move your stop to 10 points below the current price, to ensure a 5 point gain should the market reverse. You continue to adjust your stop so that it is always 10 points below the current price, but you never lower your stop. This way every time you move your stop you are locking in a greater profit. Eventually the market will reverse and your stop will be hit taking you out of the position with a profit. Action: Use Market Master to familiarize yourself with different orders. 24 Chapter 5: The Direct Access Platform The following pictures are from a particular DA trading platform. Figure 1

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How To Trade The Futures Market

For full details about this detailed course, which includes a futures trading simulator software package complete with some sample trading data, and free trading ebook package please click here Futures Trading Course

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