In the world of trading, two concepts that often get intertwined are margin and leverage. Both of these are fundamental to understanding how much a trader can control in the market relative to the capital they have. If you’re just starting in trading or you’ve been doing it for a while, understanding the nuances between…
Prop Trader Confidential: Avoid This Pitfall There are various reasons why most prop traders fail, including inexperience, a lack of discipline, over leverage, poor risk management, lack of a trading plan, poor trading skills, inability to adapt to changing market conditions just to name a few. However, there is one rule that tilts…
Prop Trader Confidential: Avoid This Pitfall There are various reasons why most prop traders fail, including inexperience, a lack of discipline, over leverage, poor risk management, lack of a trading plan, poor trading skills, inability to adapt to changing market conditions just to name a few. However, there is one rule that tilts…
Forex Trading Glossary Q-R QuoteA price quote that includes a bid and ask (offer) price. Quote Currency (Pricing Currency)The second currency in a currency pair. The quote currency is used to price the first or base currency. Forex Trading Glossary Q-R R squaredThe coefficient of determination. The percentage of variation in the…
The 10 Commandments of Risk Management for Traders There are few maxims in trading held at all times and for all traders, but at least one concept will always be relevant to every trader. That concept is risk management. From a seasoned veteran to a brand-new beginner, every trader needs to know about…
Forex Trading Glossary – L LagThe number of bars that an indicator trails the current price. For example, a moving average will peak by a number of periods after the market price peaks. This period is generally half the length of the moving average. LeadThe number of bars that an indictor designed to change…