Continuation of the previous post to understand the world of trading on the binance application through terms that are often used in the world of trading, namely:

5. Cut loss

Cut loss is the act of manually closing a trading transaction where the transaction is experiencing a loss or loss. Cut loss is done so that traders do not experience even greater losses.

6. Hedging or Locking

Hedging or locking is a condition where a trader opens Buy and Sell positions simultaneously without closing one of the positions.

Hedging is generally done to lock in a trader's profit or loss. So in a hedging condition, the trader's profit or loss will not increase.

7. Leverage

Leverage is the leverage given by a broker to a trader, so that traders can make trading transactions with small capital to take larger positions in the market.

In other words, leverage is a loan from a broker to a trader, to increase the trader's purchasing power, in the hope of providing greater profits.

8. Long and Short

Long or buy is a term that refers to a transaction to buy a currency pair in the crypto market. While Short or sell is a term that refers to a transaction to sell a currency pair in the market.

9. Lot

In forex trading, the term Lot refers to the number of currency units to be bought or sold by a trader. In other words, a lot is a unit that measures the number of trading transactions made by a trader.

The standard size for one lot is 100,000 currency units. In addition, currently lots are also available in mini lot sizes of 10,000 currency units, micro lots of 1000 currency units, and Nano lots of 100 currency units.

10. Margin Level

In general, margin in trading can be interpreted as collateral that can be used to open positions that exceed the trading funds owned by the trader.

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