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Educational content, not investment advice.

Souq Dailyسوق ديليSouq Daily

Lesson 5 of 83:133 Sources

How traders win, and how they lose

Recorded. Publishing soon

Presented by NourIn Arabic, with captions. Other languages are coming.

Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.

Profit or loss = (exit price − entry price) × position size.

  • Example: EUR/USD moves 50 pips. At $1 per pip that's ±$50; at $10 per pip (10× the size) it's ±$500 – half of a $1,000 account.
  • Leverage lets a small margin control a large position; it magnifies gains and losses equally.
  • Costs: spread on every trade, possible commission, and swap on overnight positions.
  • EU-regulated CFD providers must publish the share of retail accounts that lose money; ESMA found 74–89%.
  • Common practice: risk only 1–2% of the account per trade, set the stop loss first, then size the trade.

Quick check

Three questions. Pick an answer to see why.

0/3

  1. 1.EUR/USD moves 50 pips against you and each pip is worth $10. What is your loss?

  2. 2.What does leverage do?

  3. 3.With a $1,000 account and the 1–2% rule, what is the maximum loss per trade?

Sources

Every fact in this lesson is backed by the sources below.

  1. 1.ESMA – Prohibition of binary options and restriction of CFDs (2018)Analyses found 74–89% of retail CFD accounts typically lose money; leverage limits 30:1–2:1; negative balance protection; standardised risk warning
  2. 2.ESMA – Notice of product intervention decisions on CFDsProviders must publish their own % of retail accounts losing money, recalculated every 3 months over the last 12 months
  3. 3.FCA PS19/18 – Restricting CFD products sold to retail clientsRetail CFD leverage limited to 30:1–2:1; 50% margin close-out; negative balance protection; risk warning showing % of the firm's retail accounts that lose money

Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.