When trading forex and choosing a broker you’ve probably asked yourself what the maximum forex leverage is. In regulated markets, the highest leverage in forex for brokers is different compared to unregulated offshore markets and many forex brokers offer extreme…
When trading forex with leverage it is important to understand the difference between lot size and leverage to be able to choose the correct position size. In Forex, lot size refers to the position size while leverage acts as a…
Many beginner traders feel more comfortable trading without leverage when they first start out and this is completely normal. There are many advantages to avoiding high risk trading such as smaller losses, no risk for liquidation or margin calls, and…
During the past month, Bitcoin has been on a bull run and broke the important $30.000 level on the 11th of April. While this rise in price has been a boon for all Bitcoin holders, those using leverage on certain…
Margin requirement is one of the first things every trader must understand in leveraged markets. It’s the minimum collateral you need to open and maintain a position. Put simply: without enough margin, your broker won’t let you trade, and if…
When traders talk about 1:2 leverage (also written as 2x leverage), they mean doubling their buying power with borrowed capital. At this ratio, every dollar you deposit controls two dollars in the market, a balance that increases both profits and…
When traders talk about 1:1 leverage (also called 1x), they simply mean trading with no borrowed funds, the same as buying and selling in the spot market. At this ratio, your buying power is limited to the cash you deposit,…
Spread betting leverage and margin allow traders to speculate on financial markets—such as forex, stocks, crypto, and commodities—without owning the underlying assets. Leverage and margin play a big role in this style of trading and together they allow traders to…
Negative balance protection is a structural safety limit used by regulated brokers. It does not make leverage safer, but it prevents traders from going into debt when a position blows past their margin. Traders who already understand forced liquidation and…
A margin call happens when your broker warns that your trading account no longer has enough margin to cover open positions. It’s the broker’s way of saying: “Add funds now, or your trades will be closed.” Margin calls are common…