Categories: Ratio

What Is Quick Ratio? Understanding Forex Trading Basics

Quick Ratio in Forex is an essential trading metric that measures a trader’s ability to absorb risks and losses in the market. It provides information on the trader’s efficiency in trading, allowing for easier navigation of their current market position. The quick ratio helps traders determine if their current trading capital is at an appropriate risk-reward level and gives them the ability to make adjustments if needed. It can be used as a measure of an account’s liquidity, or in other words, the ability of an account to quickly provide liquidation for positions in case of a sudden market move. Having a good quick ratio will also help ensure traders remain in the market by providing a buffer against market volatility.

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