There are still many terms Im not familiar with as I learn and learn.
I often see people talking about building a position.
My understanding is they take a position, lets imagine it is to buy EURUSD at 1.4350 and should it move up x pips, they then move their stop to 0 ? then should it move up some more pips they buy more, in essence using their leverage for a free kick on a larger amount than they would normally risk ?
Is this it ?
What are the pro's and con's and is this very much a longer traders approach....does a position get built (typically) over days ? I would assume you would need a wide set of stops to live within and survuve the swings.
I often see people talking about building a position.
My understanding is they take a position, lets imagine it is to buy EURUSD at 1.4350 and should it move up x pips, they then move their stop to 0 ? then should it move up some more pips they buy more, in essence using their leverage for a free kick on a larger amount than they would normally risk ?
Is this it ?
What are the pro's and con's and is this very much a longer traders approach....does a position get built (typically) over days ? I would assume you would need a wide set of stops to live within and survuve the swings.