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Q: do you know what "forced liquidation" is?

Category: glossary , Asked by: O. Cervantes from Derby, United Kingdom

A: An action taken by brokerage houses that offsets and closes all positions within delinquent customer accounts in order to reduce exposure. Forced liquidations generally occur after warnings have been issued by the broker regarding the under-margin situation of an account. Should the account holder choose not to meet the margin requirements, the broker has the right to sell off the positions. Visit NobleTrading


    please tell me what the "pricing power" is

    Category: glossary by C. H. From United Kingdom

    An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand." Generally speaking, if a company doesn't have much pricing power then an increase in their prices would lessen the demand for their products.

    How do I know which regulators are trust worthy?

    Category: technical by Z. D. From Vaduz, Liechtenstein

    The simplest way is to look for sites that are licensed and certificated by familiar names, as NFA. Whenever a place says its site is certificated and regulated by NFA, you can ensure your financial details are treated with utmost strict security regulations in this site. Recommended example for such a site is "EToro USA".

    Would you name a site that has a small minimum deposit

    Category: money by A. K. From Riverside, United States

    We think the best place for your purpose is "FX Universal". The start amount to deposit is just $250, they charge no commission in this place, the platform graphics are the most fancy, plus the service is astounding.


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    do you know what "minimum margin" is?
    the "minimum margin " is The initial amount required to be deposited in a margin account before trading on margin or selling short. For example, the NYSE and the NASD require investors to deposit a minimum of $2,000 in cash or securities to open a margin account. Keep in mind that this amount is only a minimum - some brokerages may require you to deposit more than $2,000. When you buy on margin, there are key levels - as governed by the Federal Reserve Board's Regulation T - that must be maintained throughout the life of a trade. The minimum margin, which states that a broker can't extend any credit to accounts with less than $2,000 in cash (or securities) is the first requirement. Second, an initial margin of 50% is required for a trade to be entered. Third, the maintenance margin says that you must maintain equity of at least 25% or be hit with a margin call. Visit Forex Club

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