On the Oman Forex market, currency values are expressed in pips. If you look at the quote for EUR / USD 1.1301, it means that you can buy 1 euro for 1.1301 US dollars. If the rate turns into 1.1306, it means that the euro has just gotten 5 pips higher. Exchange rates are usually quoted as up to 5 figures. The first three digits are called the Big Figure. The Big Figure designation also applies to changes in quoted prices above 100 pips (for example, from 1.279 to 1.1179). Additionally, before we proceed, you can visit http://www.arabforex.pro/en/oman/ if you need the most trusted forex broker in Oman.
Then, the difference between the best ask and bid prices at the same time is called the spread. The difference becomes profits for brokerage companies in Oman. So that when traders from Oman open new orders, they are already losing the amount of the spread. So, the smaller the spread, the better.
On the other hand, Take Profit (TP) and Stop Loss (SL) are limit orders to close transactions under certain conditions. TP will close the order on its own when it has reached a certain amount of profits. Meanwhile, SL is needed to minimize risk and prevent large capital losses.
If we buy euros, TP must be greater than the price of our order, while SL is smaller.
If we sell euros, TP must be smaller than our order price, while SL must be larger.
These settings can be defined immediately when the order is opened or can be adjusted after the position is opened. Each Oman forex trader sets TP and SL manually, and generally uses SL 3 to 5 times smaller than the recommended TP. Try to apply these settings to your orders!
Finally, Volume shows the amount of currency we want to buy or sell on an order. Volume is measured in lots. In MetaTrader 4, 1 lot = 100,000 base currency units. The largest possible order volume depends on the amount deposited in your account.
Not all Oman forex traders have the opportunity to buy or sell 1 lot, therefore the broker provides clients with leverage. The best broker in Oman offers a leverage of 1: 200, which means you can place orders 200 times more than your capital.