May 31, 2018
Leverage is the possibility to trade in international financial markets with an amount up to 1000 times more than your own funds. This means that with $5000 in account, you can place orders up to $ 5 000 000. At the same time, despite the use of borrowed capital, in case of a losing trade, you can not lose more money than you deposited. This is followed in our company by the dealer. What is the attractiveness of using leverage? Here is a simple example: You have $ 5000 on your account. You use a leverage of 1: 100 (max 1: 1000) and buy 500,000 units of the USD / JPY pair. Option 1. The rate of USD / JPY during the day increased by 1%, and you get a profit of $ 5000, that is, double your deposit. Option 2. The rate of USD / JPY fell by 1% per day, and you get a loss of $ 5000, that is, you lose your deposit. Conclusion: leverage is huge financial power! Using leverage, you can quickly increase your capital, or you can lose it.