01 / INSIGHT
Exposure and margin
Leverage allows a larger market exposure with a smaller initial capital commitment. Profit and loss depend on the size of the position, not just the margin committed. A lower margin requirement does not mean lower risk.
02 / INSIGHT
Stops have execution risk too
Stop orders can help manage a trade, but gaps or limited liquidity may result in a fill away from the trigger price. Understand order rules, monitor account funds and allow for adverse scenarios.
03 / INSIGHT
Look at the whole account
Several positions may be exposed to the same market factor. Consider correlations, concentration, costs and free margin across the account, not just trade by trade. Regularly review whether your plan remains appropriate for your circumstances.
Forex and leveraged trading involve significant risk. You may lose your invested capital. This website provides general information, not investment advice.