Leverage

Leverage is the use of borrowed capital to increase one’s investment potential. In online trading, a broker will set aside a portion of the trader’s equity (required margin) while placing an investment that is larger by several degrees – thus resulting in higher profits and losses by several magnitudes. The ratio between the sum set aside and the investment actually executed differs for various asset classes and trader levels. Retail traders will get considerably lower leverage ratios than professional traders to offset the risk of loss involved.

Please Note:

  • Some currencies and commodities may not be available in certain regions.
  • While considered uncommon, spreads can vary during extreme trading conditions or during non-trading hours. If you attempt to trade under these conditions, the relevant spreads will be presented to you.

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RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.7% of retail investor accounts lose money when trading CFDs with Trade360. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Learn more about managing risks.