Other trading restrictions may include reducing position size by a set degree when things are not going well, and increasing position size by a set amount when things are going well. The tactical trading plan must also state how to exit positions. This includes exiting with a profit, or how and when to get out […]
If a trader has a leveraged position and the market moves against them, they can lose more than their initial investment. This is known as a margin call, where the broker will ask the trader to deposit more funds into their account to cover the losses. For example, a trader with a balance of $10,000 […]
Since the maturity date is an important date for both lender and borrower, it’s safe to say that it has influence on all parties involved in some way. This refers to investments that are set to mature within one to three years. This type of transaction has an agreed-upon maturity or due date when all […]