What Is Margin Trading? Margin, Leverage, Margin Calls and Liquidation Risk
Margin trading means using part of the funds in an account as collateral to establish a market position with a larger notional value. Read the full article →
What Is Leverage, and How Can It Multiply Risk?
In trading, leverage means using a relatively small amount of your own funds to establish a position with a larger notional value. Read the full article →
What Is One Lot? Units for Stocks, Forex, Futures and CFDs
“One lot” sounds like a universal trading unit, but it does not mean the same thing in every market. Read the full article →
Already Losing After Opening a Trade? Understanding the Spread
Why can an account show a small loss immediately after buying an asset? One common reason is the spread: at the same moment, the market's buying price and selling price differ. Read the full article →
What Is Slippage? Why Did My Order Fill at a Different Price?
Slippage is the difference between an order's final execution price and the price a trader expected or saw when submitting the order. Read the full article →
What Do Long and Short Mean? Trading Direction and Risk Across Markets
A long position generally gains when the price rises and loses when it falls. A short position generally gains when the price falls and loses when it rises. Read the full article →
What Is Execution Risk? An Order Does Not Guarantee the Expected Fill
Execution risk is the possibility that the order process or the resulting fill will differ from a trader's plan. Read the full article →
What Are Margin, Equity and Free Margin? A Guide to Key Account Figures
When you check a trading account, balance, equity, used margin and free margin often appear together. They sound similar, but answer different questions: How much money was originally in the account? Read the full article →
More beginner Q&A
What Is a BrokerRegulators and SafetyMargin Liquidation and InterestTrading MechanicsMarkets and ProductsFundamental Analysis Q&ATechnical Analysis Q&A
Forex and CFDs are leveraged products and carry a high risk of losing money rapidly. This page is educational and is not investment advice. Only trade with money you can afford to lose.