The amount of money needed to start forex trading depends on your chosen broker and trading goals. Many brokers offer micro accounts that allow you to start with as little as $50-$100. However, we recommend starting with at least $200-$500 to have sufficient capital for proper risk management. At Forexism, we teach you essential risk management strategies to protect your capital. We emphasize never risking more than 1-2% of your account on a single trade, which helps preserve your capital while you learn and develop your trading skills.

Margin in forex trading is the collateral or deposit required by your broker to open and maintain a trading position. It's expressed as a percentage of the full position size. For example, if your broker requires a 1% margin, you need $1,000 to control a $100,000 position. This allows traders to leverage their capital, meaning you can trade larger positions than your account balance. However, leverage amplifies both profits and losses, so proper risk management is crucial. At Forexism, we teach you how to calculate margin requirements and use leverage responsibly to protect your trading capital.

With proper risk management and the use of stop-loss orders, you should never lose more than your account balance. However, if you don't use stop-loss orders and your account goes into negative balance, some brokers may hold you liable for the loss, though many brokers offer negative balance protection. At Forexism, we emphasize the importance of always using stop-loss orders on every trade to limit potential losses. We teach you to never risk more than 1-2% of your account per trade, which ensures that even a series of losing trades won't wipe out your account. Proper risk management is one of the core principles we focus on in all our educational programs.