Quoted - wavey_
1. What’s the difference between base and quote currency in a pair like Eur/ USD
2. What’s a pip
3. How is a pop used to measure price movement in a currency pair?
4. How does leverage amplifies both potential profits and potential losses in a Forex account
5. How does leverage amplifies margin and free margin differ?
6. What’s the difference between pending order and market order
7. What’s a bearish market
8. What’s a bullish market
9 what’s a consolidation
10. What’s the purpose of a stop loss order and a take Profit order
4. How does leverage amplify both potential profits and losses?
Leverage allows you to control a larger trade with a smaller amount of your own money.
For example, with 50:1 leverage, $1 can control $50 worth of a position.
Imagine you have $100 and use leverage to control a $5,000 position.
If the position makes $50 profit, that's a 50% return on your $100.
But if it loses $50, you've also lost 50% of your money.
So:
Leverage doesn't only make profits bigger; it makes losses bigger too.
That's why leverage is often described as a double-edged sword.