Warning: Different Forex Brokers Have Different Margin Call and Stop Out Levels
Share on FacebookShare on Twitter Each retail forex broker or CFD provider sets their own Margin Call Level and Stop Out Level. It’s crucial to know what your broker’s Margin Call and Stop Out Levels are! A lot of traders don’t even bother to find out what they are before opening their account, they just […]
Trading Scenario low amount trading
Trading Scenario: What Happens If You Trade With Just $100? Share on FacebookShare on Twitter What happens if you open a trading account with just $100? Or €100? Or £100? Since margin trading allows you to open trades with just a small amount of money, it’s certainly possible to start trading forex with a $100 deposit. But should […]
Trading Scenario Margin Call stopout
Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50% Share on FacebookShare on Twitter Different retail forex brokers and CFD providers have different margin call policies. Some only operate only with Margin Calls, while others define separate Margin Call and Stop Out Levels. In the previous lesson, we went through a trading scenario where […]
Trading Scenario no Separate stopout
Trading Scenario: Margin Call Level at 100% and No Separate Stop Out Level Share on FacebookShare on Twitter Let’s now take all the margin jargon you’ve learned from the previous lessons and apply them by looking at trading scenarios with different Margin Call and Stop Out Levels. Different retail forex brokers and CFD providers have […]
What is a Stop Out Level?
What does “Stop Out Level” or “Stop Out” mean? The Stop Out Level is similar to the Margin Call Level, which was covered in the previous lesson, except that it’s much worse! In forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which one or all of your […]
What is a Margin Call?
Share on FacebookShare on Twitter What does “Margin Call Level” or “Margin Call” mean? In forex trading, the Margin Call Level is when the Margin Level has reached a specific level or threshold. When this threshold is reached, you are in danger of the POSSIBILITY of having some or all of your positions forcibly closed (or “liquidated“). The Margin Level is […]
What is Margin Level?
Share on FacebookShare on Twitter What does “Margin Level” mean? The Margin Level is the percentage (%) value based on the amount of Equity versus Used Margin. Margin Level allows you to know how much of your funds are available for new trades. The higher the Margin Level, the more Free Margin you have available to trade. […]
What is Free Margin?
What does “Free Margin” mean? Margin can be classified as either “used” or “free”. Used Margin, which is just the aggregate of all the Required Margin from all open positions, was discussed in a previous lesson. Free Margin is the difference between Equity and Used Margin. Free Margin refers to the Equity in a trader’s account that is NOT tied up in […]
What is Equity?
What is Equity? Share on FacebookShare on Twitter 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 […]
What is CFD trading?
CFD trading is defined as ‘the buying and selling of CFDs’, with ‘CFD’ meaning ‘contract for difference’. CFDs are a derivative product because they enable you to speculate on financial markets such as shares, forex, indices and commodities without having to take ownership of the underlying assets.Play VideoPlayMuteLoaded: 8.34%Remaining Time -1:58SharePicture-in-PictureFullscreen Instead, when you trade a CFD, […]
