Knowing the meaning behind these terms helps traders navigate markets with more clarity.
It is often used as a hedge or to speculate on downward movement in the market.
Margin What equity means in trading forex trading refers to the amount of capital required to open a leveraged position.
This system limits speculative intraday trades and applies to certain high-risk equities.
It is important for managing large or complex positions as expiration approaches.
With this knowledge, traders can evaluate opportunities more carefully and build strategies based on well-defined financial mechanics.