What does “Equity” mean? The account equity or simply “Equity” represents the current value of your trading account. Equity is the current value of the account and fluctuates with every tick when looking at your trading platform on your screen. It is the sum of your account balance and all floating (unrealized) profits or losses associated with your open …

What is Equity? 23 NOV 2021 Read More »

What does “Used Margin” mean? In order to understand what Used Margin is, we must first understand what Required Margin is. Whenever you open a new position, a specific amount of Required Margin is set aside. Required Margin was discussed in detail in the previous lesson, so if you don’t know what it is, please read our What is Margin? lesson …

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What is margin? When trading forex, you are only required to put up a small amount of capital to open and maintain a new position. This capital is known as the margin. For example, if you want to buy $100,000 worth of USD/JPY, you don’t need to put up the full amount, you only need to put up a …

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In your trading platform, you will see something that says “Unrealized P/L” or “Floating P/L” with green or red numbers beside them. In this lesson, we explain what Unrealized P/L and Floating P/L are. When trading, there are actually two different types of “profit or loss”, also known as “P/L”. Both are important. Let’s discuss the difference between the …

What is Unrealized P/L and Floating P/L? 11 NOV 2021 Read More »

What does “Account Balance” mean? In order to start trading forex, you need to open an account with a retail forex broker or CFD provider. Once your account is approved, then you can transfer funds into the account. This new account should only be funded with “risk capital”, which is cash you can afford to lose. The “Account …

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The biggest appeal that forex trading offers is the ability to trade on margin. But for many forex traders, “margin” is a foreign concept and one that is often misunderstood. Like Bob. Bob sure knows his fried chicken and mashed potatoes but absolutely has no clue about margin and leverage. Margin trading gives you the ability …

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5 NOV 2021 It’s not just the stock market. The forex market also boasts of a bunch of advantages over the futures market, similar to its advantages over stocks. But wait, there’s more… So much more! Liquidity In the forex market, $6.6 trillion is traded daily, making it the largest and most liquid market in …

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There are approximately 2,800+ stocks listed on the New York Stock exchange. Another 3,300+ are listed on the NASDAQ. Which one will you trade? Got the time to stay on top of so many companies?With forex, there are dozens of currencies traded, but the majority of market players trade the seven major pairs. Aren’t seven major …

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There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market: No commissions No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail forex brokers are compensated for their services through something called the “spread“. No fixed lot size In …

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