Basic Beans

Capital Analysis


Jul.18.2013

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In forex, just like any other kind of investment, you need to be aware of your capital, risks and reward potential.

Before making an investment decision on your, you need to calculate your capital, the spread with your broker, and the leverage that makes sense to your trade and capital, to avoid unpredicted losses. This can also be called risk management.

Depending on your capital and the amount of money you have in your account, your trading strategy should differ. Every time you get in and out of a trade, you pay a fee to your broker which is called the spread- the difference between the bid and ask price. Furthermore, you have the option of using a leverage that often is available anywhere from 2 to 50 times. Learn deeply about this once you are eligible to drink your Capital Beans.

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