Inflation Hedge
Historically, copper has shown a positive correlation with inflation, making it an attractive inflation hedge.
Initial Margin
The initial margin is the minimum amount of money required to open a new leveraged position.
Leverage
Leverage allows you to open a position much larger than your initial capital outlay.
Leverage Ratio
The leverage ratio expresses the relationship between your total exposure and the margin required.
Liquidity Risk
Liquidity risk is the potential for loss arising from the inability to buy or sell an asset quickly enough at a favorable price.
Maintenance Margin
The maintenance margin is the minimum amount of equity that must be maintained in your account to keep an open leveraged position.
Margin Call
A margin call is a requirement to deposit additional funds or face automatic liquidation of your positions by the broker, typically triggered by significant losses on leveraged trades.
Market Risk
Market risk, often synonymous with systematic risk, refers to the potential for financial loss due to fluctuations in the overall market.
Negative Balance Protection
Negative balance protection ensures that you cannot lose more than the funds available in your trading account, preventing your balance from going into negative territory.
Overnight Risk
Overnight risk is the exposure traders face to potential gap openings if significant news breaks while markets are closed, particularly when holding positions across session changes or into the weekend.