Investment capital definition

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A trader’s investment capital is the portion of financial resources they have available for trading. It could be in the form of money or other assets.

Investing is just one of many ways of generating wealth with capital, so investment capital is often a portion of a trader’s full capital resource.

The allocation and use of investment capital is a key part of any trading strategy. Most strategies recommend utilising investment capital in a diverse selection of asset classes and products. Leverage is a way of making investment capital go further, by multiplying profits and losses from the initial deposits for a trade.

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