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Cash vs Margin

QuestionsCategory: QuestionsCash vs Margin
ben dror asked 4 years ago
Hey Pat  Trying to make sense in the difference between a cash account and margin I know there is a rule of thumb to risk approx 1% of your trading account per trade so for example on a 10k cash account, 1% would be $100 per trade would that mean on a 10k Margin account I would risk 1% of the buying power per trade?

or is that completely not related to one another?

again thanks a lot for everything you do I can really feel  I have improved a lot since I have joined the VIP's
1 Answers
Avatar photoOwen Staff answered 4 years ago

Hi Ben,

Pat made this video for you:
https://youtu.be/4HHpbt2V8TI