Leverage, margin and costs
How leverage works, what margin ties up, the rules that protect retail traders and what a trade really costs.
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- 1Leverage: controlling a big position with a small amount of capitalUnderstand leverage in trading: exposure, margin, worked 1:30 and 1:500 examples on EUR/USD, and why leverage magnifies your losses as much as your gains.6 min read
- 2Margin, margin call and stop out: what happens when your position losesUsed margin, free margin, margin level, margin call and stop out explained step by step, with a worked EUR/USD example to help you avoid being liquidated.6 min read
- 3ESMA and FCA rules: leverage limits, negative balance protection and pro statusESMA and FCA leverage limits by asset, 50% close-out, negative balance protection, professional client status and offshore brokers: what really protects you.6 min read
- 4Order types: market, limit, stop, OCO and trailing stopMarket, limit, stop, stop-limit, OCO, trailing stop, take profit and stop loss orders: how each trading order type works and when you should use each one.6 min read
- 5Spread, commission and slippage: the costs you pay on every tradeFixed or variable spreads, ECN commissions, positive and negative slippage, spread widening around news: work out what every single trade really costs you.6 min read
- 6Swap: what holding a position overnight costs (or pays) youForex swap explained: overnight financing, interest rate differential, positive or negative swap, Wednesday triple swap and Islamic accounts, worked example.6 min read
- 7The real cost of a trade: adding up every feeAdd up spread, commission, swap and slippage to find the real cost of a trade, in pips and as a % of your risk, with a scalping versus swing comparison.6 min read
- 8Demo account or live account: when and how to go liveWhat a demo trading account is good for and where it falls short, how execution and psychology differ in live trading, and when to go live with small capital.6 min read