margin

Negative Balance Protection & Margin Stop-Out Policies Compared

Negative Balance Protection & Margin Stop-Out Policies Compared

Balance your trading strategy by understanding Negative Balance Protection and Margin Stop-Out Policies, two necessary components that safeguard your investments. Negative Balance Protection ensures you cannot lose more than your account balance, shielding you from owing money to your broker. In contrast, Margin Stop-Out Policies automatically close your positions when your margin level falls below a certain threshold, which can help prevent excessive losses. Learning how these mechanisms work allows you to make informed decisions and manage risks effectively in your trading journey. Understanding Negative Balance Protection Definition of Negative Balance Protection Negative Balance Protection (NBP) is a safety feature…
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How does leverage work in forex? Risks and rewards

How does leverage work in forex? Risks and rewards

The foreign exchange (forex) market is the largest and most liquid financial market in the world, with trillions of dollars traded every day. One of the most distinctive features of forex trading is leverage—a financial mechanism that enables traders to gain significant exposure to the market with only a fraction of the capital normally required. While leverage is a core reason why forex appeals to many, it remains one of the least understood and most dangerous tools in trading. Understanding leverage in detail is essential for anyone considering forex, whether you are a complete beginner or a more experienced investor…
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