Leverage Products – Definition and Examples

Leverage Products – Definition and Examples Leveraged products, also called, leverage instruments are trading derivatives that offer traders to speculate on underlying assets with large position sizes by depositing a small initial investment called the margin. Through the use of leverage, traders can access a lot more capital than what they are typically able to trade with. This opens up the opportunity for much larger profits and losses. Leverage products have gotten very popular among beginner traders due to their …

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Liquidation Price Calculator

Liquidation Price Calculator A liquidation price calculator online might come in handy when you need to calculate at what price level your leveraged position in Crypto, Forex, Stocks, or any other asset class gets liquidated to add a protective stop to mitigate risk. This is useful for leverage trading traders who want to know how much risk they can take for each trade. Our tool below uses a formula to calculate the liquidation price based on the entry price + …

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Negative Balance Protection – What It Is and Why It Matters

Negative Balance Protection – What It Is and Why It Matters The negative balance protection tool is one of the few must-know features of leveraged brokers that offer trading with leverage. This tool can save you hundreds or even thousands of dollars and it is the best protection beginners have against risk while trading on a margin account. Many traders enter highly leveraged positions without knowing how easy it is to fall into debt if you are using the wrong …

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What is a Margin Call and How To Avoid it?

What is a Margin Call and How To Avoid it? Your leverage broker will send you a margin call when you are running low on margin requirements due to outsized losses during extended bear markets or simply from taking on too much leverage. Margin calls are an important form of risk control that allows a broker to act quickly when a trader starts to lose too much money. This is to prevent traders from liquidating their trading accounts and reduce …

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A Guide To Day Trading With Leverage

A Guide To Day Trading With Leverage Those who have tried day trading in any type of market might wonder if they would do better if they use leverage or if it’s just a myth that margin-traded accounts increase profits straight away. It can be difficult to make enough revenue as a trader without a decent account size and for day traders especially, leverage adds that extra buying power that is needed to see larger gains. This is going to …

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How Do Brokers Make Money On Leverage?

How Do Brokers Make Money On Leverage? Forex brokers, leverage trading platforms, and CFD brokers have something in common, they all make money by lending capital to traders through leverage. In fact, these brokers make more money than any other type of broker and the reason for that is leverage. But how do brokers make money on leverage exactly and how much do they make on each trade? In this article, I will explain the two main ways how brokers …

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Short Selling With Leverage: How It Works

Short Selling With Leverage: How It Works Short selling and leverage go hand in hand and in this article, I will teach you all there is to know about how short selling works and why leverage plays such a big part in this style of trading. If this is a completely new area of trading for you and you want more in-depth guides, I recommend reading these articles. There is one guide for each market. Now, the idea of short …

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Do You Have To Pay Back Leverage?

Do You Have To Pay Back Leverage? When you open a leveraged position in forex, crypto, or stock trading, you are obligated to pay back the leverage you used to your broker. This happens automatically at the time when you hit the sell button and your trade is closed out. To learn more about leveraged positions and how they work, I recommend reading these articles as well: These guides will help you get a better understanding of how leverage affects …

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What Is Liquidation Price?

What Is Liquidation Price? To get the complete picture of what liquidation price means in relation to what liquidation is and to understand how losses work in leveraged trading I would recommend first reading these guides: In this article, I will break down the concept of the liquidation price which is misunderstood among most beginner traders since the nature of how it is works might seem complicated at first glance. Key takeaways Related: Use our liquidation price calculator to manage …

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What Is A Leveraged Position?

What Is A Leveraged Position? If you are a complete beginner on the topic of leveraged trading and want to learn what a leveraged position is you have landed on the right page. After reading this article, you will have learned all the basic concepts of what a leverage position means and how it works. Before continuing with this guide I recommend that you read up on some of our other guides to further educate yourself on the topic. Here …

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Leverage Trading is an educational website where new traders and investors can educate themselves on how to trade Forex, Stocks, and Crypto with leverage. Our main priority is you, our readers, and our ambition is to share our own knowledge from trading the financial markets for decades.

Our team of experienced investors and traders share their wisdom to help you increase your profit with increased buying power.