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Follow on Google News | Leverage Increased For All Plus500 CFD ProductsLeverage is a facility that enables you to gain a large exposure to a financial instrument while only tying up a relatively small amount of your capital. 10% margin means that for just €100 you could get the same exposure as a €1000 investment.
By: Plus500 You can set the amount of leverage by deciding how much to buy or sell of any instrument. For example, If you have as Equity €5000 and bought €5000 of Apple Share CFDs, you are leveraged as follows: - Equity = €5000 - Position Value = €5000 - Margin = €100 Risk of leverage: The nature of leveraged trading means that both profits and losses are magnified. CFDs are not suited to a long term investor. If you hold a CFD open over a long period of time, the associated costs increase, and it may be more beneficial to buy or sell the underlying asset instead. Benefits of leverage: - The primary benefit of leverage is that you use only a fraction of your capital to trade the assets you are interested in. Example: A 10% margin means that for just €100 you could get the same exposure as a €1000 investment. This represents leverage of 10 times, or 10:1. A trader deposited €5,000 to Plus500 and has as his balance €5,000. In the table below you can see the result of the trader opening a separate buy position on each instrument. More info: http://www.investment- End
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