The Trade Busters

28 - Less Buying Power does NOT mean Less Risk

Sep 10, 2021
The podcast episode explores the concept of buying power and its relation to risk in trading. It provides insights on buying power, leverage, and risk, and offers examples of different products and contract sizes to illustrate varying levels of risk involved. The episode also discusses the concept of notional risk and buying power, the relatively low buying power requirements for ES and MES contracts, and the risks and benefits of leverage in trading. It emphasizes the importance of product knowledge, risk management, and careful calculation and understanding in trading.
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