Posts Tagged ‘leverage’

Stop-Out Level vs. Margin Call

When choosing a Forex broker and planning to open your first account, you will probably hear a lot about stop-out level, margin call, and leverage. While many brokers will only talk about margin calls, others seem to delineate between margin calls and stop-out levels. What is a stop-out level, and what is the difference between a stop-out level and a margin call? To start with, let’s quickly review the definition [...]

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Scalping Trading Strategy: High Leverage, Little Time and Few PIPs at a Time

The technique of scalping is a very popular one among forex traders, one loved and encouraged by online brokers, and which is made possible by exploiting the high leverages that are typical of this market.

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How Much To Invest in Forex: Why Starting On A Low Budget Is Rarely a Good Idea

If you are new to the world of forex investing, chances are you were first introduced to this world by one of the many flashy banners you see around promoting brokers that say you can open a mini account with them with just $100, sometimes even less. However, despite what you may have been brought to believe, investing such low sums of money is generally a bad idea.

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Money Management Rules: The Importance of Setting Strict Thresholds

In forex like in other forms of investment, deciding beforehand exactly how much you’re going to risk in a trade and when you’ll be getting out is something of the utmost importance. In forex more than in other markets, though, novice traders tend to avoid this fundamental step completely.

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Online Forex Brokers Benefits: What “No Commissions” Really Stands For

If you’ve been browsing the Web in search for the online forex broker that “feels right” and seems to best suite your needs, you may have read or heard several times a phrase that sounds tremendously attractive to the newbie forex trader:

“We charge no commissions on our trades: we are compensated through the difference between the the buy and sell price.”

But what does this all mean? Will your profit margins be higher? Unfortunately, this is not necessarily the case.

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