Mindblown: a blog about philosophy.
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Is the Forex Broker Licensed and Regulated?
Is the forex broker licensed and regulated? Is the company licensed, regulated, and authorized to operate as a forex broker where you live? Notice the extra emphasis on “where you live”? It’s not enough to verify a broker’s regulatory status, you need to know which regulatory agency it is registered with and whether the jurisdiction that the…
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Is the Forex Broker a Legit Company?
Who are you trading with? Is the forex broker a legitimate company? Can you trust it? Unlike Batman in the story from the previous lesson, you’re not going to know who you are trading with. And even if you did, that doesn’t mean you should blindly trust them. Do not trust Spider-Man. He stole my money.…
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How Do Forex Brokers Work?
Using a story, let’s learn how forex brokers work…. Once upon a time, two frenemies, Batman and Spider-Man, were hanging out. They were lounging on the couch watching a movie, Justice League (Snyder’s Cut), but after a couple of hours, their attention span started to drift. Even Batman began to get annoyed at watching himself…
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How to Choose a Forex Broker
Choosing a forex broker will be the first crucial decision you’ll make as a new trader. This is why you should always perform due diligence (“do yo DD”) and DYOR. Dealing desk forex broker? Non-dealing desk forex broker? Market maker forex broker? If you’ve started doing any of your own research on which forex broker to use,…
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What is a Stop Out Level?
What does “Stop Out Level” or “Stop Out” mean? The Stop Out Level is similar to the Margin Call Level, which was covered in the previous lesson, except that it’s much worse! In forex trading, a Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which one or all of your…
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What is a Margin Call?
What does “Margin Call Level” or “Margin Call” mean? In forex trading, the Margin Call Level is when the Margin Level has reached a specific level or threshold. When this threshold is reached, you are in danger of the POSSIBILITY of having some or all of your positions forcibly closed (or “liquidated“). The Margin Level is the “metric” and the “Margin…
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What is Margin Level?
What does “Margin Level” mean? The Margin Level is the percentage (%) value based on the amount of Equity versus Used Margin. Margin Level allows you to know how much of your funds are available for new trades. The higher the Margin Level, the more Free Margin you have available to trade. The lower the Margin Level,…
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What is Free Margin?
What does “Free Margin” mean? Margin can be classified as either “used” or “free”. Used Margin, which is just the aggregate of all the Required Margin from all open positions, was discussed in a previous lesson. Free Margin is the difference between Equity and Used Margin. Free Margin refers to the Equity in a trader’s account that is NOT tied up in…
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What is Equity?
What does “Equity” mean? The account equity or simply “Equity” represents the current value of your trading account. Equity is the current value of the account and fluctuates with every tick when looking at your trading platform on your screen. It is the sum of your account balance and all floating (unrealized) profits or losses associated with your open…
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What is Used Margin?
What does “Used Margin” mean? In order to understand what Used Margin is, we must first understand what Required Margin is. Whenever you open a new position, a specific amount of Required Margin is set aside. Required Margin was discussed in detail in the previous lesson, so if you don’t know what it is, please read our What is Margin? lesson…
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