Using multi contract targets ( explanation please)

[phoenix25140]

Hi all,

I have recently been watching a live forex trade room with IB brokerage.

The trader uses 5 Contracts @ 50,000 per lot to initiate the trade and then removes contracts as targets are hit.

For example Buy 5 Contracts @ 1.32000

2 Contracts off at 1.32010

2 Contracts off at 1.32.020

1 Contract off at the final target of 1.32030

There is no explanation or financial explanation of the final profit figure or risk. Is the value of the initial trade £25 per point, decreasing once each contract is removed ?!

Any explanation or insight would be a massive help . :smart:

 

[VeerTrade]

When you say IB brokerage are you referring to Interactive Brokers or an Introducing Broker?

Are they trading standard lots?

You need to ask them if the targets are fixed and the same for each trade or are they varied. T

The take profit levels could be at areas of S/R, vary depending on the time the trade is taken etc.