A margin call occurs when your account equity falls below the required margin level needed to maintain open positions. When this happens, your broker may request that you deposit more funds or close some positions to reduce risk.
A margin call occurs when your account equity falls below the required margin level needed to maintain open positions. When this happens, your broker may request that you deposit more funds or close some positions to reduce risk.
A stop-loss order is a risk management tool that automatically closes a trade at a predetermined price to limit potential losses. Using stop-loss orders helps protect your capital and ensures you stick to your trading strategy without letting emotions take over.
Bid is the price a buyer is willing to pay for an asset. Ask is the price a seller is willing to sell an asset for.
Leverage allows you to control a larger position with a smaller amount of capital. For example, a 1:100 leverage means you can control $100,000 worth of assets with just $1,000. While leverage can amplify profits, it also increases potential losses, so it should be used carefully.
Spreads refer to the difference between the bid price (buy) and the ask price (sell) of a trading instrument. It represents the broker’s fee for executing the trade and can be fixed or variable depending on market conditions.
A pip (percentage in point) is the smallest price movement in the Forex market. It usually represents a movement of 0.0001 in currency pairs priced to four decimal places.
Forex, or foreign exchange, is the global marketplace for trading national currencies against one another. It is the largest and most liquid financial market in the world, operating 24 hours a day, five days a week.
A CFD, or Contract for Difference, is a financial instrument that allows you to speculate on the price movement of assets without owning the underlying asset. You can profit from both rising and falling markets by buying (going long) or selling (going short) CFDs.
