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One of your first missions when stepping into today’s markets is to know how leverage works and what is leverage . By allowing investors to control big positions with only a small amount of their own cash, trading platforms have made leverage a core tool people rely on.  This article covers everything about leverage, how it works, and the risks that come with it, all while staying within the rules set by regulators. Defining Leverage in Trading Simply put, leverage means you can borrow money from your broker so you can place a trade much bigger than your account balance . It is usually shown as a ratio, like 10:1 or even 100:1 , and that number tells you how many times your cash is being multiplied. Brokers offer this feature on everything from EUR / USD pairs to Tesla shares and Bitcoin trades. How Leverage Works Leverage lets traders put up only a small part of a trade, called margin, while the broker covers the rest. The margin works like collateral, and the broker adjus...

When you step into trading-whether it be forex, knowing about the types of trading orders is a must, since this is the way to tell the market how to work with your invested funds. That message is carried by the kind of order you pick: market , limit , or stop .  Knowing the ins and outs o f these three options helps keep beginners from losing money simply because the right command was never sent to the trading screen.  Understanding Order Types At its core, an order is a written instruction telling a trading platform to buy or sell a certain asset at a certain moment. Market orders, limit orders, and stop orders each play a special role, letting you decide exactly how fast or slow your trade should move.  No matter whether you’re eyeing the EUR / USD , a Tesla share , or a piece of Bitcoin , these basic commands keep your money in line without forcing you into any preset game plan. The Types of Trading Orders – A Complete Review A market order is simple: hit th...