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Trading Basics

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Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin…
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As a general rule of thumb, we recommend limiting total account leverage to a maximum of 20:1. For example, if you have an account balance of $10,000, you could trade a maximum position size twenty times larger than your account…
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The word “PIP” stands for Percentage in Point. In forex, a pip is what you would consider a “point” for calculating profits and losses. On Trading Station, you can see the value of a pip for each of your trades when entering…
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Effective Leverage relates to the amount of leverage that your account is using to control the total value of the positions you have open.  Here is an example: Assume you have a Standard Lot of USD/CAD (100K on Trading Station…
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When trading Forex on margin, there can be a few ways to determine the required margin for a trade.  Fixed margin means that there is a fixed amount of margin required to open a trade. If margins were variable and…
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