What’s a Budget in Trading?
In general, a budget is the amount of money available to spend based upon a plan. If you have $100 budget for clothes that’s the amount you spend on clothes.
In trading, the amount of money available to spend is called Trading Capital. If you have $100 Trading Capital for stocks, that’s the amount you can spend buying and selling stocks.
Trading Capital and Budget are similar because they both set the amount of money you can spend. But the difference is in trading your goal is to make a Profit from your Trading Capital.
Have fun trading stocks while playing Trading Day, our free stock market game.