Why Do Brokers Offer Leverage To Retail Investors?
Why Do Brokers Offer Leverage To Retail Investors? Why do brokers offer leverage to retail traders, how do they benefit from it, and what’s in it for the traders? This is probably something that you have asked yourself many times while leverage trading without knowing the true answer. The main objective is of course to make money but there is more to this than just the increased revenue and I will provide some facts about why brokers let novice traders trade with more capital than they have ever used before. It seems like a risky endeavor, however, many traders profit from using borrowed money thanks to strict risk-management systems and effective leverage trading strategies. But why do brokers provide such high leverage ratios and what is the advantage of using these brokers compared to a regular platform that offers spot trading? The short answer is that there are both benefits …