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Mindblown: a blog about philosophy.

  • What is Margin?

    What is margin? When trading forex, you are only required to put up a small amount of capital to open and maintain a new position. This capital is known as the margin. For example, if you want to buy $100,000 worth of USD/JPY, you don’t need to put up the full amount, you only need to put up a…

  • What is Unrealized P/L and Floating P/L?

    In your trading platform, you will see something that says “Unrealized P/L” or “Floating P/L” with green or red numbers beside them. In this lesson, we explain what Unrealized P/L and Floating P/L are. When trading, there are actually two different types of “profit or loss”, also known as “P/L”. Both are important. Let’s discuss the difference between the…

  • What is Account Balance?

    What does “Account Balance” mean? In order to start trading forex, you need to open an account with a retail forex broker or CFD provider. Once your account is approved, then you can transfer funds into the account. This new account should only be funded with “risk capital”, which is cash you can afford to lose. The “Account…

  • What is Margin Trading?

    The biggest appeal that forex trading offers is the ability to trade on margin. But for many forex traders, “margin” is a foreign concept and one that is often misunderstood. Like Bob. Bob sure knows his fried chicken and mashed potatoes but absolutely has no clue about margin and leverage. Margin trading gives you the ability…

  • Why Trade Forex: Forex vs. Futures

    It’s not just the stock market. The forex market also boasts of a bunch of advantages over the futures market, similar to its advantages over stocks. But wait, there’s more… So much more! Liquidity In the forex market, $6.6 trillion is traded daily, making it the largest and most liquid market in the world. This…

  • Why Trade Forex: Forex vs. Stocks

    There are approximately 2,800+ stocks listed on the New York Stock exchange. Another 3,300+ are listed on the NASDAQ. Which one will you trade? Got the time to stay on top of so many companies? With forex, there are dozens of currencies traded, but the majority of market players trade the seven major pairs. Aren’t seven…

  • Why Trade Forex: Advantages Of Forex Trading

    There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market: No commissions No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail forex brokers are compensated for their services through something called the “spread“. No fixed lot size In…

  • Know Your Forex History

    At the end of World War II, the whole world was experiencing so much chaos that the major Western governments felt the need to create a system to stabilize the global economy. Known as the “Bretton Woods System,” the agreement set the exchange rate of the US dollar against gold. Which allowed all other currencies to…

  • Forex Market Players

    Now that you know the overall structure of the forex market, let’s delve in a little deeper to find out who exactly these people on the ladder are. It is essential for you that you understand the nature of the spot forex market and who are the main forex market players. Until the late 1990s,…

  • Forex Market Structure

    For the sake of comparison, let us first examine a market that most folks are probably very familiar with: the stock market. This is how the structure of the stock market looks like: By its very nature, the stock market tends to be very monopolistic. There is only one entity, one specialist that controls prices.All trades…

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