The correlation between the position size of a trade and the margin deposited into the account. The term gearing refers to the leverage in that trading situation. If a position is highly geared, it means that you can have substantial risk, while also possibly gaining large amounts as well. Because of the nature of Forex Trading, a trader can Control a large amount of currency with a relatively small deposit.See also: Leverage.
Browse by Subjects
debt equity ratio
See All Related Terms »
European Economic Community
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):