Learning how markets function starts with understanding the terminology.
It allows traders to enter larger trades without committing the full value upfront.
Leverage is expressed as a ratio, such as 10:1 or 100:1, and must be handled carefully.
Percentage Essence of equity in trading point is the smallest price move in forex trading.
Bearish contract gives the holder the right to sell an asset at a predetermined price before expiration.
It fluctuates in real time based on market movement and helps determine margin availability.
It’s designed to improve transparency and often used for volatile or manipulated stocks.
Familiarity with these terms enables traders to protect capital under pressure, especially in leveraged environments.
