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Leverage, Margin and Staying Alive
The one mechanism that empties accounts, taken apart step by step — and the arithmetic that keeps you on the right side of it.
- Who it is for
- Anyone who has seen 1:500 offered and is not sure what it does.
- Before you start
- First Steps in the Market.
Opens with Premium, or buy the course on its own.
You will be able to
- Explain what leverage gives you and what it does not
- Work out the real leverage on a position, not the number on the account
- Calculate the margin a trade needs before you take it
- Read balance, equity and free margin and say what each one means
- Say how far a position is from a margin call, and from a stop out
- Set a size that cannot reach a stop out on one trade
14 papers
A short quiz after every paper; the next paper opens when you pass it.
Unit 1
What leverage is
- 01What Is Leverage7 min
- 02How to Calculate Real Leverage5 min
- 03What Is Notional Value5 min
Unit 2
What it costs to hold open
Unit 3
How an account dies
- 07What Is a Margin Call7 min
- 08What Is a Stop Out7 min
- 09What Is Drawdown6 min
- 10How Much Drawdown Is Normal5 min
Unit 4
How to stay alive