Intermediate
Notional exposure and effective leverage
Leverage describes the relationship between exposure and equity. It does not tell you whether a trade has a good reason to exist.
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CFDs Trading Guide
Understand CFDs, interpret quotes and measure the effects of leverage, costs and execution. Follow ten stages from contract basics to strategy testing, portfolio hedging and a disciplined trading process.
Start with What a CFD gives you and what it does not, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Margin Leverage and Position Sizing · All lessons
Margin Leverage and Position Sizing
Separate required margin from trade risk and prepare for adverse price moves.
Intermediate
Position sizing from risk rather than margin
Required margin answers whether an order can be opened. Position sizing should answer whether the planned loss and a worse outcome are tolerable.
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Intermediate
Margin close out and account equity
A margin close out is an account survival mechanism, not a carefully chosen trading exit. Understand its trigger before several positions share the same equity.
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Intermediate
Stops gaps and realistic loss limits
A stop instruction and a guaranteed exit are different promises. Model what happens when the market jumps past the price you planned to use.
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