Leverage Increased For All Plus500 CFD Products

Leverage 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
 
 
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LONDON - Oct. 16, 2013 - PRLog -- At Plus500 you control your leverage:
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-guru.com/plus500-leverage-increased/
End
Source:Plus500
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Tags:Shares, Forex, Indices, Commodities, Etf S
Industry:Financial, Investment
Location:London City - London, Greater - England
Subject:Services
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Page Updated Last on: Oct 16, 2013
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