Margin is the capital a trader must put up to open a new position. It is not a fee or cost and is freed up again once the trade is closed. Its purpose is to protect the broker from losses. When losses cause a trader's margin to fall below a pre-defined stop out percentage, one...
A Stop Out Level is when your Margin Level falls to a specific level in which one or all of your open positions are closed automatically (“liquidated”).
The Foreign Exchange Market, popularly known as Forex, is a decentralized global market where all the world’s currencies trade. Forex, with a daily trading volume exceeding $6 trillion, is the largest and most liquid financial market in the world. The market operates 24 hours a day, five ...
Forex trading is legal in the United Kingdom and is regulated by the Financial Conduct Authority (FCA). The FCA hands out licenses to brokers and also provides regulatory oversight. They demand that ethical practices and client protections be put in place. The FCA only approves legitimate and ...
What is Leverage in Forex? - Leverage is one of the key advantages of Forex Trading that helps the traders to increase their potential return on investment.
We’ve mentioned that Forex Trading has huge volumes traded daily, but what other reasons is the Forex Market so popular for traders? Trading Forex comes with many unique advantages: Advantages of Forex Trading Forex market has the largest size and liquidity throughout the world. No single entit...
Or inforextrading terms, assuming you’re an American visiting Japan, you’ve sold dollars and bought yen. Before you fly back home, you stop by the currency exchange booth to exchange the yen that you miraculously have remaining (Tokyo is expensive!) and notice the exchange rates have chang...
Here is an example to figure out what a 1 pip change would look like for EUR/USD pair. EUR/USD = 1.03554Pip In Forex pips are usually the last decimal place of a price quote. Most pairs go out to 4 decimal places, but there are some exceptions like Japanese yen pairs (they go out...
One of the key advantages of the forex market is its ability to operate continuously throughout the week. As the trading session in one region comes to a close, another session begins in a different part of the world. For instance, after the Asian session concludes, the European and UK ba...
If you have a long position on the USD/CHF, you will want the pair to rise in value. To avoid any possibility of uncontrolled losses, you can place a stop-sell order at a certain price so that your position will automatically be closed out when that price is reached. A short position...