Glossary Background

Capital in Trading

Capital refers to the total amount of money available for a trader to invest in securities. It can include funds used for buying and selling assets such as stocks, bonds, or commodities. A key variation of this term is starting capital, which is the amount of money a trader begins with when entering the market. Starting capital is crucial as it determines the scale of investments a trader can make and impacts their potential profits or losses. Managing capital wisely is essential for long-term success in trading.