Leverage is vitally important, yet it remains a misunderstood concept for many traders. The leverage ratio essentially governs the margin required in an account to trade. 1:100 leverage means for every 100 USD traded, 1 USD margin is required (or 1%). 1:200 leverage, therefore, means for every 200 USD traded, 1 USD margin is required … Continue reading Forex Leverage and Margin Defined
Newer traders often enter trading with exaggerated dreams, void of accurate education. To trade the forex market successfully, understanding the dynamics behind how trades are measured is a necessity. Currency Pairs A base currency is the primary currency in a currency pair quotation – the euro in EUR/USD, for example. The quote currency, or counter … Continue reading What Are Lots in the Forex Market?