Tag: Investopedia

Investopedia is the world’s leading source of financial content on the web, ranging from market news to retirement strategies, investing education to insights from advisors. With expertise from over 100 trusted sources, Investopedia has become the go-to destination for traders and investors looking for reliable resources on how to make informed decisions in the markets. From calculating risk to mastering options trading, Investopedia is the online financial resource that keeps you informed and smart about the world of finance.

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Working Capital Investopedia: A Guide to Understanding and Investing

Nicole Knight

Working capital is an important concept in forex trading. It refers to the amount of money a trader has available to open positions, manage risk, and pay for costs associated with the trading activity. Working capital is the difference between the total assets and the total liabilities of a trader. It is important to have enough working capital when trading forex, as it allows a trader to cover the cost of any losses incurred in the course of making a positive return. Having a healthy balance of working capital can also help to protect traders from emotional mistakes that can frequently lead to large financial losses.