Preparing The Working Space

Trading is a serious business and like any business, if you are to spend a lot of time looking at screens than you might just want to have the proper settings that fit your needs. In order to study a currency pair you need the working environment to be as user friendly as possible, and basically we’re adjusting colors, candles, background, data window, market watch, and showing you how to set the amount to be traded and the instruments also.

There is a difference between spreads on different currency pairs and this spread actually is being the broker’s money, meaning that anytime you entered a trade, regardless if long or short, first you pay the spread, and only then looking to close the trade on profit. Basically you always start on a negative foot, and, depending on the currency pair you are trading, this spread can be really tight, like in the case of eurusd, which has less than 1 pip (pips are being called the digits on a quotation – for example if price travels from 1.31405 to 1.31595, you might say that it travels 19 pips, meaning the difference between the two), or larger (on exotic pairs or crosses spread can go even to 10 pips, or more, reason being those currency pairs are less liquid and broker takes a bigger risk).

Under this chapter you can also find useful information regarding how to use the Data Window on the platform, and this one is an important tool in case you’re backtesting price history because it can give you information regarding the OHLC (open, high, low, close) of each candle and, if any indicators are being placed on the chart, than those values should be there too for study, and how to change the properties for one specific chart. By right clicking with the mouse on any chart, choose Properties, and after you choose colors for background, candles, etc, if you click the Common tab, you’ll find some important tabs in there, like Grid (the whole window will be split into equally vertical and horizontal lines in the form of a grid), Autoscroll, Chart Shift, etc. On the recording I made some recommendations regarding my preferences and explaining what each tab means, but by all means that does not suggest they are the best settings, just giving you an example of how to work with those elements.

Finally you also have an example of a trade being initiated, but just for teasing you at this time, as orders and type of orders are being the subject of a different recording.

Next video deals with different time-frames for studying a currency pair and you will see why this is important.