Forex brokers provide retail investors access to the forex market through the interbank exchange allowing them to invest in a market that was once only open to banks, large hedge funds, Central banks and countries.
Depending on what type of system traders are utilizing they have several types of trades orders they can place. These orders can help traders handle different types of market conditions or actually even lock in gains once they have been realized making sure those gains do not turn into losses.
To take profit traders place limit orders or also called take profit orders once a trade is placed. Once price reaches these limit order prices the trade is closed and exited with profit taking gains.
Stop loss orders are used by traders to lock in profits once a trade has moved into profit and also used at the time of the trade to minimize losses protecting account capital. Every time a new trade is established a stop loss orders should be used as it will protect traders from taking losses that are too big.
