Forex Basics
What is a Lot?
In foreign exchange, transaction size is measured in lots. For example, if you were to buy one lot of EURUSD that simply means that you are going to buy...
What is Leverage?
In forex, traders may trade with more capital than the amount they deposited in their accounts. This is simply because of leverage...
What is Margin?
Margin is a “good faith deposit” required by the broker so you can open and maintain a position. It is actually the minimum amount of cash...
What is Free Margin?
Simply put, Free Margin is the amount of cash in your account that is available for trading. Say, that your account Balance is 10,000 US Dollars...
What is Margin Level?
The Margin Level is the ratio of the equity to the Margin Used in currently open positions. It is expressed as a percentage:
What is Margin Call?
A Margin Call is a red-flag warning that the available capital in the trading account is less than the minimum amount required to maintain the open positions.