Beginner’s Education Articles

What Is Leverage?

What Is Leverage?

Leverage in forex is a “loan” that the broker gives to the trader so that the trader has more capital to trade with than what he or she initially deposited. Leverage is expressed in the form of a ratio and it depends on the client's knowledge and experience. Pure...

read more
What Is Margin?

What Is Margin?

Since we have covered Leverage and how Leverage works in Forex, let's take a look at MarginMargin is the amount of funds that the broker requires from the trader as collateral, in order to open a specific position of volume based on the leverage that the client has...

read more
What is your balance?

What is your balance?

Balance in forex refers to the amount of money you have in your trading account. It is very important to remember that your balance does not include any profits or losses you might have from any open positions. If you have open positions, your balance might change...

read more
What Is your Equity?

What Is your Equity?

Now that we have already covered Balance, it is vital to understand what Equity is. In trading, equity refers to the amount of money a trader has in their trading account (the Balance) plus or minus any profit or loss from open positions. Many traders confuse these...

read more
What is Free Margin?

What is Free Margin?

Free Margin in forex trading in its simplest definition, is the money in your trading account that is available for trading. It is calculated by using the formula: Free Margin = Equity - Margin (of open positions). Let's look at a relevant example. A trader enters a...

read more
What Is Margin Call?

What Is Margin Call?

Margin Call is a notification which alerts you that you need to deposit more money in your trading account, or close losing positions, to free up margin. Margin Call is denoted as a fixed percentage, determined by the broker. You can find the Margin Call percentage in...

read more
What Is Stop Out?

What Is Stop Out?

Since we have already covered Free Margin and Margin Call, it is now time to look at Stop Out. In forex trading, Stop Out is the level at which the broker starts closing automatically (“liquidating”) all of his least-profitable open positions in the foreign exchange...

read more

No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.

Register with Pure Market Broker

Trading Articles