What You Need to Know about Leverage and Margin in Trading

What is Leverage? When you trade the markets, traders generally do so with leverage. Leverage is a loan that the broker provides to the trader. Essentially, the textbook definition of “leverage” can be summarized as having the ability to control a large amount of money using none or very little of your own money and […]

What are Drawdown and Maximum Drawdown in Trading?

If you’re a trader, then you need to know about drawdown and maximum drawdown. These concepts are essential for risk management and ensuring that your trading account remains healthy. In this post, we’ll explain what drawdown and maximum drawdown are, and how you can use them to your advantage. What is a Drawdown in Trading? […]

Glossary of 12 Key Margin Terms in Forex

One area of Forex trading that has a language all to itself is the world of margin. It seems that there is a whole list of terms specific to margin that deserve to be talked about as well. It might be helpful to keep a list of definitions of common words related to margin near […]

What is a Stop Out Level in Forex?

The stop-out level is a term that many people have looked at before and wonder what exactly it is. Unfortunately, there is no good news coming your way when you learn about what this term really means. It is a frightening term that is even scarier than the margin call term, though the two are […]

What is a Margin Call Level in Forex?

The topic we are going to cover today is one that should be a little spooky for any Forex trader. It is not that a trader should be intimidated by the market, but they should be aware of the dangers that can happen in any trade. A healthy respect for risk is something that makes […]

What is a Margin Level in Forex?

In financial investment terms, a margin involves the mathematical amount representing the difference between equity (what the investor owns) and used margin. Understanding this value helps an investor decide how much can then be used for new trades and investment positions beyond the investments already made. No one wants to be over-committed, as that can […]