Education

Money Management· page 2

32 articles

How to protect your account and survive the bad streaks: risk per trade, leverage, risk-reward, stop-loss and drawdown, explained with worked examples.

What is copy trading and how does it work?
EducationMoney Management

What is copy trading and how does it work?

Copy trading automatically mirrors another trader's trades in your account. You keep control of your capital, but the risk — and the losses — stay yours.

JUL/4/20263 min read
Should you let someone else trade your account?
EducationMoney Management

Should you let someone else trade your account?

You can delegate your capital through managed accounts, copy trading, or account access, but the risk stays yours. The key isn't who wins most, but who you can verify.

JUL/4/20262 min read
Why does it matter that your broker or manager is regulated?
EducationMoney Management

Why does it matter that your broker or manager is regulated?

A regulated broker or manager is supervised by a recognized authority that protects client funds and gives you recourse against fraud. It doesn't guarantee profits, but it does guarantee protection.

JUL/4/20261 min read
What is a swap in forex?
EducationMoney Management

What is a swap in forex?

A swap, also known as rollover interest, is the interest a forex broker charges or pays a trader for holding a position open past the daily market close (usually 5 PM New York…

SEP/21/20264 min read
Market, limit and stop orders: which one should you use and when?
EducationMoney Management

Market, limit and stop orders: which one should you use and when?

Mastering forex trading requires understanding three core order types: use a market order for immediate execution at the current price, a limit order to buy below or sell above…

SEP/21/20263 min read
Balance, equity, margin and free margin: what your terminal is telling you
EducationMoney Management

Balance, equity, margin and free margin: what your terminal is telling you

Five numbers along the bottom of your platform, and the one beginners watch is the one that cannot tell them anything. What each means, and which decides if your trades stay open.

SEP/23/20268 min read
Spread vs commission vs swap: what a trade really costs
EducationMoney Management

Spread vs commission vs swap: what a trade really costs

Three costs, one bill, charged at three different moments. What does one standard lot of EUR/USD held overnight really cost, and which of the three takes over after night two?

SEP/24/20268 min read
Margin vs leverage: one is a ratio, the other is money
EducationMoney Management

Margin vs leverage: one is a ratio, the other is money

One is a permission your broker grants, the other is money a single trade locks and returns. The same position at four leverage settings, and the one number that never moves.

SEP/24/20266 min read
Slippage vs requote vs gap: why did you get a different price?
EducationMoney Management

Slippage vs requote vs gap: why did you get a different price?

Three events, one symptom: the price you got is not the one you clicked. Which one hit you, and what decides if a move reaches you as slippage or as a requote?

SEP/26/20268 min read
Standard vs mini vs micro lot: what 1.00, 0.10 and 0.01 really mean
EducationMoney Management

Standard vs mini vs micro lot: what 1.00, 0.10 and 0.01 really mean

A lot is a block of the base currency: 100,000, 10,000 or 1,000 units. What 1.00, 0.10 and 0.01 mean on a MetaTrader ticket, and what each does to a small account.

OCT/6/20265 min read
Hedging vs netting in MT5: two account modes, and what a lock really costs
EducationMoney Management

Hedging vs netting in MT5: two account modes, and what a lock really costs

MT5 accounts count positions by netting or by hedging. What an opposite order does on each, and why a lock freezes a loss without ever closing it.

OCT/8/20267 min read
Raw spread vs standard account: which one is actually cheaper?
EducationMoney Management

Raw spread vs standard account: which one is actually cheaper?

A raw account charges a commission; a standard one builds its cost into the spread. The cheaper one depends on the pair: the same $7 is 0.70 pips on EUR/USD and 1.10 on USD/JPY.

OCT/23/20265 min read
Pips vs points vs ticks: the 5-digit broker confusion
EducationMoney Management

Pips vs points vs ticks: the 5-digit broker confusion

MT5 counts in points, not pips. On a 5-digit broker a point is a tenth of a pip, so a spread of 12 is 1.2 pips. How to tell pips, points and ticks apart.

SEP/28/20265 min read
ECN vs STP vs market maker: who is on the other side of your trade?
EducationMoney Management

ECN vs STP vs market maker: who is on the other side of your trade?

Three labels for what a broker does with your order. Which one is yours, and why does the licence say more than the account page?

SEP/27/20268 min read

Other series