MIM

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  • What is take-profit?

    Take-profit is an order to automatically close a position when it reaches a target profit level. For example, if a buy position is entered at 1.2000 with take-profit at 1.2100, the position will a...

  • What is a stop-loss?

    A stop-loss is an order placed to limit losses when the market moves against expectations. For example, if a buy order is placed at 1.2000 with a stop-loss at 1.1950, the position will be automati...

  • What is the difference between a long position and a short position?

    A long position is when a trader expects the price of an asset to rise and enters a buy position. Conversely, a short position is when a trader expects the price to fall and enters a sell position...

  • What is a position?

    A position refers to the direction and size of a trader’s exposure in the market. A long position means betting on price increases, while a short position means profiting from price decreases. Th...

  • How is a pip calculated?

    A pip is the smallest unit of price movement in forex and CFD trading. Most currency pairs are quoted to four decimal places, where 0.0001 equals 1 pip. For example, if EUR/USD moves from 1.1000 ...

  • What is margin requirement?

    Margin requirement refers to the minimum amount of capital needed to open a specific position. This amount varies depending on trade size and leverage ratio. If margin is insufficient, orders may...

  • When does a margin call occur?

    A margin call occurs when the maintenance margin in an account falls below the required threshold. This is a warning signal indicating insufficient funds to maintain open positions. If additional...

  • How does leverage work?

    Leverage is a financial tool that allows traders to control larger positions with a smaller amount of capital. For example, with 100x leverage, $1,000 can be used to trade a position worth $100,00...

  • What is margin?

    Margin refers to the amount of money that must be deposited as collateral to open a position. It represents a portion of the total trade size, and the required margin level varies depending on the...

  • What is a spread?

    A spread refers to the difference between the Bid (buy) price and the Ask (sell) price. This difference represents a type of trading cost, as it is essentially the fee that a trader pays the momen...