How to Manage Forex Account with ZuluTrade

In this tutorial, we will explain the basics and show you how to manage a forex account with ZuluTrade, the largest social trading network; You will learn how to place a forex trade with ZuluTrade, how to manage risk and set up a stop-loss which helps you protect your margin and finally, how to place a limit order to secure can cash in on your trading profit. 

So, if you decided to start trading forex with ZuluTrade, you chose a relevant broker and opened an account with them. You can find a complete list of ZuluTrade brokers here. 

How to Open a Forex Trade

When your broker account is set up and running, you will need to open up an actual trading position. So how would you do that? First, go to the ZuluTrade platform and select the Trade tab on the My Account page. You can see how this work in a video tutorial at the end of this page. 

There will be a list of currency pairs available on this Trade tab, and you need to select the pair you want to trade.  When it comes to forex trading, you need to remember that the first currency in the pair is called a Base Currency. And the second currency is called the quote currency.

Once you have selected a currency pair you want to trade, you need to determine if you want to sell or buy the Base currency using the quote currency.  If you believe that the Base currency will appreciate or go up relative to the quote currency, you buy a pair. You sell a pair if your view is that the base currency will depreciate or decrease relative to the quote currency.  That is as simple as that. 

What is Bid and Ask Price

If you look at the buy and sell columns in the chart, you will notice that currencies typically have two prices. 

Under the sell column, you will find what is called the Bid price. This is when the market will buy one unit of the base currency from you using the quote currency. 

Under the buy column, you will find what is called the Ask price. This is the amount at which the market will sell one unit of the base currency to you using the quote currency. 

The Bid price is always smaller than the Ask price. And the difference between the Bid and Ask price is what professional traders call Bid/Ask spread. 

To better understand this, let’s look at an example of forex trade. 

For the British Pound US Dollar (GBP/USD) pair, the bid price is 1.63414. And the Ask price is 1.63455.  If you want to sell GBP, you select the price on the sell column and sell GBP at 1.63414. If you want to buy GBP, you click the price on the buy, and you will buy pounds at 1.63455. 

Although this is simple operation is enough to place a trade, there are also more advanced options that you can use to adjust and manage your trading position. Let’s take a look at them. 

Market vs Limit Orders in Forex Trading

A Market Order buys or sells the currency pair immediately at the current rate determined by the market and cannot be changed. This is also known as a Spot price.  As you can see in our example in the video, the market box has already been selected. This is because all trades are set to market orders by default. 

By unselecting the box, you can place what is called a Limit order. A limit order is placed to buy or sell a certain predetermined price that you can choose. The limit order is typically based on two variables, price and duration. Let’s take a look at an example. 

Let’s say that the EUR/USD  pair is currently being sold for 1.2050 euros to the dollar. But you are only prepared to buy euros if the price reaches 1.2070 as you think this is a good price to enter the trade. 

You can either sit in front of your computer and wait for the price to hit 1.2070, at which point you would execute a market order manually. Or you can set a buy limit order at 1.2070. If the price goes up to 1.2070, the ZuluTrade broker will automatically execute a buy order at that exact price. As with the market orders, traders can determine the size of the order in lots. By default, all orders are set at one lot. 

How to Manage Risk with Stop-Loss

A stop-loss order tells the system to close a trading position when the price reaches a certain level. A stop-loss order is designed to limit traders potential loss and is an essential tool for managing risk properly. For example, setting a stop-loss order for 10% below the price you paid for the trade will limit your loss to 10%. Otherwise, if something happens on the market when you are not around or can’t react fast, your loss can be potentially unlimited. A stop-loss order remains in effect until your position is liquidated or until you cancel the stop-loss order. Experienced traders usually set a stop-loss for all of their trades to ensure they don’t lose large sums of money in times of unprecedented market events. 

For example, you bought the EUR/USD pair at 1.2000. To limit your maximum loss, you set up a stop-loss order at 1.2200. What it means is that if you were wrong and the EUR/USD drops to 1.2200 instead of moving up, the broker will automatically execute a sell order at 1.2200 and close your position for a 20 PIP loss. 

On the ZuluTrade platform, all trading positions have a default stop loss set to 500 pips to ensure traders don’t incur high losses. Traders can customise this value at the specified field. 

How to Maximise Profit with Stop-Limit

There is also a stop-limit feature which is similar to stop-loss. You can set your position to automatically close once the stop limit per trade has been reached. Again, that is a handy feature if you have positions open but can’t sit in front of your computer all day. The stop-loss and take=profit features help you automate your trading strategies and remove the emotional element from the trades.

So, let’s look at another example… Suppose you bought a EUR/USD pair at 1.2230. If you think that the price will go up and you would be expecting profit gain, say, of 40 pips, you can set a stop limit at 1.2270. 

That means that if you were right and the EUR/USD pair hit 1.2270, the broker trading platform would automatically sell the order at 1.2270 and secure your 40 PIP profit gain, even if the price hits this level for a second and then drops. So you still will be able to secure your profit and don’t risk missing the trade. 

All positions have a stop limit of 500 pips set by default on the ZuluTrade social trading platform, similar to the stop-loss feature. You can also set the stop limit manually for each particular trade. 

We hope this video tutorial will assist you in managing your forex trading account successfully. Don’t worry if you are interested in trading and making money in forex but still feel a little inexperienced executing your own trades. 

With the ZuluTrade social trading platform, you can choose to follow several experienced traders and their top-performing strategies for free. And you can learn how to be a successful trader from the best! 

For more information on how the ZuluTrade trading platform works, please read this in-depth ZuluTrade review. 

For more information on the world largest social trading platform, please read our comprehensive ZuluTrade review.

Practice with ZuluTrade Demo Account

? Best for Social Trading
? Easy with Copy Trading
✅ 1000+ Tradable Assets
?? US Clients Allowed

Risk Warning

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Profit-sharing accounts are subject to a monthly performance fee per selected trading system.

Start NowStart Now