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Tag: Educational

What is Fundamental Analysis?

Fundamental analysis is the interpretation of political, economic, and social factors which may have an impact on a country’s economy, subsequently affecting the value of its currency. Generally speaking, the health of a country’s economy reflects in the value of its currency and a healthy economy will tend to have

Take Profit, Stop Loss and the Trailing Stop

When it comes to forex trading, the excitement and emotions involved can often cause traders to focus on entering the market and generating profits, completely overlooking one of the most important aspects of trading ‘Risk Management’. One of the keys to achieving success in forex trading over the long term

What is a pip in Forex?

The term PIP stands for ‘percentage in points’ or ‘price interest point’ and in simple terms is a unit of measurement which is used to express the change in price between two currencies. Pips are used in forex trading to calculate the spread (difference between the Bid and Ask price)

Trading Psychology

Let’ face it, no one likes losing money and the emotions triggered by such events will manifest themselves differently within each individual. Studies show that investors feel losses twice as hard as wins, potentially further influencing future trading decisions. When trading successfully an investor may start to feel overconfident, particularly

What is Forex trading?

Forex also referred to as FX, foreign exchange, and currency trading is the act of exchanging one currency for another. Why Trade Forex? There are many reasons why currencies are exchanged. Whilst most foreign exchanges occur for practical reasons such as tourism and commerce, trading also takes place with the

What is Stop out?

In our previous articles, we looked in detail at margin and leverage. We saw that when trading forex or other CFD’s (Contracts for Difference) on margin we were required to have an amount of money (initial margin) available in our account to open a leveraged position. This amount of money

What is a Margin Call?

We now know that Margin is the amount of money or capital needed by an investor to open a trade. Essentially these funds are ‘locked’ in the trading platform when a trade is opened and are released when a trade is closed. We also know that the Margin level expressed

What is Margin Level?

Whether you are a seasoned and experienced Investor or Trader, or perhaps you are completely new to CFD trading and are just starting out, a very important concept in trading and trade management is understanding and managing the Margin Level in the trading terminal and using this to control and
blog what does your equity 1.7.21
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What does your Equity on MT4 mean?

After previously exploring the concept of balance in the MT4, we are now presenting another concept related to the financials of your account, the equity. In this educational article, we will present what equity is, what it is used for, and how it is different from your balance. What is