Auction orders with a fixed price. What is it and how to earn on it

Auction orders with a fixed price. What is it and how to earn on it

For many traders, trading on the stock exchange means both the opportunity to achieve incredible financial success, and to suffer a complete collapse.

Until recently, trading on the exchange meant imminent risk. But recently, everything has changed, because there was an opportunity to trade at auction orders with a fixed price ( Profit as an unlikely loss is fixed, and the risk is minimal.

The essence of the “field 51”

There are cases when traders do not have enough money to hold a position, a stop out happens and the position is closed. But what happens to the asset next? Previously, the transaction was simply closed without bringing any profit to anyone, but now the asset is put up for auction of orders with a fixed price, also known in the circle of professionals as “field 51”.

Specialized companies working with a pool of such orders are engaged in continuous monitoring of the market, analyze data, select the best, most promising options and offer traders with special conditions.

The order is redeemed at a fixed price with predetermined levels of profit, unlikely loss and closing dates. The trader in the case of the most negative development of events will not suffer a loss above the previously agreed upon, and the company will receive all the profit on the asset, if it exceeds the previously agreed figure.


How the work is implemented

Some of the millions of orders opened daily around the world inevitably go into a minus or forcibly closed by brokers. In the future, the broker may either close the order in the old fashioned way and possibly incur losses, or try to resell promising assets using “field 51” and intermediary companies and continue to receive income from it. What is often done.

Intermediary companies, in turn, have access to information about hundreds of thousands of such orders daily. The entire array is carefully analyzed and the most appropriate orders are offered to customers. Each company has its own mechanism for the selection and analysis of orders, but everything is always done very well, because it directly depends on whether the company will receive profits or suffer losses. Modern technology allowed the analysis to be extremely fast. In some companies, the whole process takes less than 10 seconds.

What is required of the client

The trader has the opportunity to purchase any of the assets offered, just enough to have the necessary amount of money in the account. It is important to know only four parameters to make an investment decision:

– Asset price. You need to know how much money you need to have to outbid an asset.

– Tolerable risk. It is necessary to determine what percentage of the value of the asset a trader may incur as a loss.

– Maximum profit. You need to know what percentage of the amount the trader will receive in the event of a favorable outcome of the transaction.

– Duration of the order. The maximum period during which the order will be open. If the maximum loss and profit is reached before this period, the order will immediately close immediately.

Why the “field 51” is worth it

Summing up, let us note once again the unconditional advantages that the auction of orders with a fixed price has. First, unlike standard stock trading, where risks are high and there is a chance of losing everything on one transaction, here the loss cannot exceed a couple of percent.

Secondly, trading at a fixed-price auction puts forth extremely low requirements for traders. It is not necessary to have high qualifications or experience to ensure a profit. It is enough to find a reliable company that will do everything necessary.