What is Price Adjustment, and why you may need it?
In forex, the price tells you the exchange rate of a currency, or its worth, compared with its counterpart. In a trading chart and MT4/MT5®, it is displayed on the right side in the shape of a bid/ask spread. The bid is the price at which you wish to buy a currency, whereas ask or offer is the rate at which a person wishes to sell the same.
When you are placing a trade in forex, it is essential to note the difference between its bid and ask price, as subtracting the two would give you the spread on that pair. Major currency pairs like EUR/USD, USD/JPY usually have the lowest spread in the market as they have higher liquidity. Traders try and trade such pairs more often as using them will guarantee a smooth trade, low commission on the brokers’ side, and better volatility.
Getting a forex trade at a better price would undoubtedly be more profitable for a trader. It would ensure that you get better risk management as your stop loss will be close to the opening price, while your profit target will be as big as possible. In the financial world, where the markets and forex brokers offer tough conditions for traders, a good edge on the price would certainly be helpful on your road to being more successful.
How does the Price Adjustment Feature work in Forex Copier?
Forex Copier provides great opportunities when it comes to price adjustments. The automated copy trading software allows you to get in on a trade at a price set by you. Clicking on the “Wait for a better price before opening/closing market orders” will let copy forex traders customize settings related to it. There are two main types of price adjustments in Forex Copier:
Price Adjustments For Opening Orders
Price Adjustments For Closing Orders
Price Adjustments For Opening Orders
Open Order Immediately At Current Market Price
This option is simple, as it will open the incoming order at the current market price on the receiver account. No changes in price are made.
Open Order Based On Fixed Amount Of Pip Benefit
Mirror trading software allows you to open your trade on the source account with the set amount of pip benefits. The order will only be copied if the price is the same or better than the source based on the number of pips you entered.
For example, you buy USD/CAD at 1.13500 and enter 2 pips within the box “Open price on Receiver account should be at least … pips better than the original open price on the Source account” (please see image 1). The order on the receiver account will be opened only when a settled (1.13480) or better price arrives.
Image 1: Select the highlighted option to open a trade at a better price.
Open Order At The Same Or Better Price
The trade will only take place if the selected price is the same or better than the price on the source account. If the price has moved against you, then the order will not be copied.
Open Order At Better, Same Or No More Than the Specified Number Of Pips Worse Price
When you choose option “Open price on Receiver account should be no more than … worse than the original open price on the Source account”, auto trade copier opens an order on the Receiver account if the price is better, the same or (no more than the settled number of pips) worse than the price on the Source account.
Image 2: Open orders at no more than the specified number of pips worse than the price with the best trade copier.
Price Adjustments for Closing Orders
Close Order at Current Market Price
The order will be closed automatically on the Receiver account after it closes on the Source account no matter what the price is.
Close Order Based on Fixed Amount of Pip Benefit
In this case, the order on the Receiver account will be closed only if the price is better than the Source’s price. If you choose option “Close when price is at least“ 20 “or more pips better than the Source order close price”, the auto trade copier will set the Take profit at 20 pips. If you also choose option “Close anyway if price on Receiver account is “10” (or more) pips worse than the Source order close price”, the auto trade copier will set the Stop Loss at 10 pips.
Image 3: Close your order based on a fixed amount of pips profit with Forex Copy software.
Close Order Based On the Profit
The order will be closed only if it has given the set profit in pips. If you choose option “Close anyway if price on the Receiver account is “10”(or more) pips worse than the Source order close price”, the auto trade copier will set the Stop Loss at 10 pips.
Benefits of Using the Price Adjustment Feature of Forex Copier
The following benefits can be achieved using the price adjustment feature of Forex Copier:
Ability to successfully copy forex trades between accounts of different brokers with prices that often vary. This minimizes risks of potential losses on such transactions.
Better risk management on your account as you can get a higher risk/reward ratio.
Getting a higher R/R ratio immediately lowers the win rate required for you to stay profitable.
For currency pairs that have a high spread, you can get in on the trade at an earlier point, which will save you trade costs.
Ability to grow Receiver accounts with better profits on each receiving account.
The price adjustment feature of Forex Copier can help you manage multiple accounts with different brokers. Combining price adjustments with other features of the best forex copy trader can give your trading a considerable advantage.