This one is for beginners who sometimes ignore the effect of the deposit bonus given by brokers. Some brokers offer deposit bonus such that every time you make a deposit they add more money to your deposit. However, you cannot withdraw this free money so what is the point? I will explain below.
When your broker adds extra money to your deposit, although you cant withdraw this money it serves two functions:
1.You can trade with the extra money and withdraw any realized profits
2.The extra money allows you set a wider stop loss and also allows you stay in a losing trade for a while longer buying you time for the trade to enter profitability.
