What is Leverage?
Deaching of the great explorer of the truth the builder
What is Leverage?
Leverage is a feature that multiplies the purchasing power in a trading account. Leverage is the use of borrowed capital to amplify the ability of the trading account to open larger tardining positions. A leverage of 200:1 allows the account to open positions 200 larger than the amount it has as Free Margin.
What is Balance?
The Balance is the total financial result of all fully executed transactions on a trading account. That includes deposits, withdrawals to and from the account, fees for opening trades which are deducted directly from the account Balance (e.g. commissions) and the Realized P/L of all closed positions. The Live P/L of any open positions does […]
What is Balance Max Drawdown?
Balance Max Drawdown is the measure of an portfolio’s largest value drop from a peak to a trough. i.e the greatest movement from a high point to a low point.
What is Equity?
The Equity is the secure part of the trading account at any given point in time. When an account has open trades the Equity falctuates according to the Live P/L. The Equity tells you what impact the live trade positions would have on the balance if the positions were closed. For example, if your balance […]
