What is Forex?
How Do You Trade Forex?
Now, it's time to learn HOW to rake in the moolah!
When Can You Trade Forex?
Now that you know who participates in the forex market, it's time to learn when you can trade!
Who Trades Forex?
From money exchangers, to banks, to hedge fund managers, to local Joes like your Uncle Pete - everybody participates in the forex market!
Why Trade Forex?
Want to know some reasons why traders love the forex market? Read on to find out what makes it so attractive!
Margin Trading 101: Understand How Your Margin Account Works
A beginner's guide on how margin trading works. If you skip these lessons, you will quickly obliterate your trading account. Guaranteed.
- What is Margin Trading?
- What is Balance?
- What is Unrealized P/L and Floating P/L?
- What is Margin?
- What is Used Margin?
- What is Equity?
- What is Free Margin?
- What is Margin Level?
- What is a Margin Call Level?
- What is a Stop Out Level?
- Trading Scenario: Margin Call Level at 100% and No Separate Stop Out Level
- Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50%
- Trading Scenario: What Happens If You Trade With Just $100?
- Warning: Different Forex Brokers Have Different Margin Call and Stop Out Levels
- The Relationship Between Margin and Leverage
- Margin Jargon Cheat Sheet
What is Margin Trading?
Trading using margin is one of the main reasons why people choose to trade in forex instead of the options available. Margin trading is trading with just a fraction of the sum of what the total deal costs. Many traders are clueless about what margin trading is and thus end up either not using it all or lose money because of use in spite of improper knowledge. Margin trading allows you to trade for capitals much more than what your balance is. With a little bit of balance, you can open much bigger trades in the forex market. This way, when the trade moves even slightly in your favor, you can sell the trade and thus earn a much larger profit than what you would have got as returns on the trade with your capital. You need to be very careful when trading with margins as that could lead to enormous losses as well if the market moves against you. In margin trading, there are a number of jargons which can confuse you and hence it is necessary to study them properly before starting with margin trading. Margin trading can earn you massive profits if you use it to your profit. You need to consider a number of metrics while margin trading to see if things are turning south and close the deal as soon as possible. Margin trading is one of the most effective ways to trade in the forex market with risk lesser than usual, but you need to consider multiple factors before you start to avoid causing losses.