How does leverage trading work

Leverage works by using a deposit, known as margin, to provide you with increased exposure to an underlying asset. Essentially, you’re putting down a fraction of the full value of your trade - and your provider is loaning you the rest. Your toal exposure compared to your margin is known as the leverage ratio.

Key Takeaways. Leverage is the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance alone. Brokerage accounts allow the use of leverage through margin trading, where the broker provides the borrowed funds.

What is MEtaTrader 4 and how oes it work?

First, you should know that MetaTrader4 (MT4) is simply a trading platform used by tons of traders and brokers. Traders use it to view real-time currency prices, open or adjust orders, get technical and fundamental analysis. This makes it easy for them to track trade opportunities.

What is a Pip?

Pip is an acronym for “percentage in point” or “price interest point.” a pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the pip change is the last (fourth) decimal point. A pip is thus equivalent to 1/100 of 1% or one basis point.

For example, the smallest move the USD/CAD currency pair can make is $0.0001 or one basis point.

Key Takeaways

• Forex currency pairs are quoted in terms of pips, short for percentage in points. 

• In practical terms, a pip is one-hundredth of one percent, or the fourth decimal place (0.0001).

• Currency base pairs are typically quoted where the bid-ask spread is measured in pips.

What is a Satoshi?

The satoshi is the smallest unit of the cryptocurrency bitcoin. It is named after Satoshi Nakamoto, the founder(s) of the protocol used in blockchains and the bitcoin cryptocurrency. The satoshi to bitcoin ratio is 100 million satoshis to one bitcoin.

Key Takeaways

• A satoshi is the smallest denomination of bitcoin, equivalent to 100 millionth of a bitcoin.

• Bitcoins can be split into smaller units to facilitate smaller transactions

• The satoshi was named after the bitcoin founder(s) known as Satoshi Nakamoto.

Understanding Satoshi

The satoshi represents one hundred millionths of a bitcoin. Because bitcoin has increased in value exponentially, smaller denominations are needed for smaller transactions. Small denominations make bitcoin transactions easier to conduct while making them readable by people. For example, if you caught a $100 item with one bitcoin, your charge might ring up as 

00210028 BTC, or 210,028 satoshi (if BTC equaled $47,612.81). In this example, it’s easier to understand satoshi.

ALT FI RULES

Step 1 - check blueprint of H4 TF Market Conditions (above or below orange line)

Step 2 - drop to 30 minute TF for educators notes

Step 3 - confirm risk to reward is greater than 1:3 or above