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    Thread: What is working capital?

    1. #11
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      Default Re: What is working capital?

      As the name implies, the "working capital" is the real trading capital of the trader, this is excluding the profits which the trader earn through their trading activities. And forex traders should not make mistake on this working capital, they can either plan to make their real capital alone be their working capital, or they add their profits to it in form of compounding, the choice lies with the trader.

      Above all, traders themselves are the ones that knows their working capital, because working capitals vary. Some traders might invest $500, and always withdrawal their profits accrued above the $500. In this case, the $500 is the working capital of the trader. And if the account has $675, you will know that $175 among the whole sum is a mere profits even if all the $675 is in the account of the trader.

      While some traders might want to compound their working capital at any certain period of time, in this case, any amount in the account of the trader can be regard as their working capital, that is why i said the scope of the working capital varies among traders.


    2. #12
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      Default Re: What is working capital?

      working capital can be refers to as money that can be use for investment like forex or every others business are always kick start with capital whether small or big capital
      all can be use for business as well, meanwhile there is some differences between big and small, in terms of forex trading it is the big capital that are very save to me , while because with big capital i can be able it generate some good profits whereas with small capital the tendency is one can loss with any slight mistake , all this is about investment money in the business.
      Last edited by uduak18; 01-12-2019 at 02:21 PM. Reason: missing a word


    3. #13
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      Default Re: What is working capital?

      Working capital is money available to a company for day-to-day operations. which is used to in financing the daily needs in a business, or production. this capital also can show the health of business and how financial stability a business are. the working capital can also be categories as current asset, and current asset can be a cash and cash equivalent, and to consider an asset tangible asset to be a working asset it must be the type of asset that c;an be turn into cash in a very short period of time.
      How big the working capital is can sometimes be determine by the nature of a company's or business sales and how customers pay


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    5. #14
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      Default Re: What is working capital?

      Working capital is the operating capital available to business, organisation or other entity. It is a measure of a company's operational efficiency and its financial health. It is the money available to fund the day to day operations of a company and determines it liquidity.

      Working capital is calculated by subtracting the current liabilities from the current assets. Current assets that are included in the working capital calculation are cash, accounts receivable, inventory, and short term investments. Without a change of the same amount in current liabilities, a change in the total amount of current assets will result in a change in the amount of working capital.
      POSSIBILITIES ARE INFINITE IN THE FOREX MARKET, YOU CAN ACCOMPLISH ANYTHING !


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