In order to open a position for your next trade when using Ainvesting trading platform, click “Buy” or “Sell” buttons on the screen.
You have to perform the following actions (depends on the selected type of instrument):
Currency Pairs (Forex): Select the amount of basic units/lots you wish to Buy/Sell.
Stocks/Shares: Select the amount of shares you wish to Buy/Sell.
Indices: Select the amount of shares you wish to Buy/Sell. Each transaction will represent a multiple USD, EUR or other currency of traded value.
Commodities: Select the amount of basic units/lots you wish to Buy/Sell.
(Optional) Take Profit (Close at Profit): Set the Take Profit amount/rate on which you want to close the position. The supplied default value is usually 0.1% above/below the current buy/sell rate.
(Optional) Stop Loss (Close at Loss Rate): Set the Stop Loss amount/rate at which you want to limit your loss. The supplied default value is usually 0.1% below/above the current buy/sell rate. Note that after a favorable rate movement, manually adjusting this stop/limit rate (“Edit Position”) can ensure that profits are locked in.
(Optional) Limit Orders (Buy/Sell) when Rate is: Set your price to Buy/Sell the instrument when or if it meets your specified price. Set the Limit Rate by selecting the limit order check box (Buy/Sell when Rate is), enter your desired order rate (From current Rate) and click Buy/Sell.
Example of Opening a Position:
You signed up and deposited $1,000 via credit card:
- Balance: $1,000 (Deposits & Withdraws, profit and loss of closed positions).
- P&L = $0 (total profit and loss of all open positions including Premium).
- Available Balance: $1,000 (Balance + P&L of open positions – Initial Margins).
- Equity: $1,000 (Balance + P&L of open positions).
1:00pm – you press ‘Buy’ Gold which is trading at: (Sell $1,199.65/Buy $1,200.35) per ounce.
- Number of ounces: 10.
- Close at Profit Rate: $1,250.
- Close at Loss Rate: $1,150.
- The total amount you bought is: 10*$1,200.35 = $12,003.50
The Maintenance Margin required to maintain the gold position is 0.3%: $36.01
- P&L = 0. (Usually the spread of gold is 50-70 cents so you would have a P&L of -$7).
- Available Balance after you bought gold is $939.99: $1,000 – [$12,003.50: 200].
- Equity: $1,000 ($1,000 + $0).
- 2:15pm – gold jumps to $1,250.
- P&L +$496.50: (10*$1,250 – 10*$1,200.35).
- Equity $1,496.50: ($1,000 + $496.50).
2:15pm – your Take Profit order executes and the position is closed. You made $496.50 on the transaction.
P&L: 0 (no open positions).
Available Balance: $1,496.50
If at 2:15 pm gold slumps to $1,150:
P&L -$503.50: (10*$1,150 – 10*$1,200.35)
Equity $496.50 ($1,000 – $503.50).
P&L: 0 (no open positions).
Available Balance: $496.50.