When traders talk about 1:2 leverage (also written as 2x leverage), they mean doubling their buying power with borrowed capital. At this ratio, every dollar you deposit controls two dollars in the market, a balance that increases both profits and…
When traders talk about 1:1 leverage (also called 1x), they simply mean trading with no borrowed funds, the same as buying and selling in the spot market. At this ratio, your buying power is limited to the cash you deposit,…
Spread betting leverage and margin allow traders to speculate on financial markets—such as forex, stocks, crypto, and commodities—without owning the underlying assets. Leverage and margin play a big role in this style of trading and together they allow traders to…
Leverage products, also called leveraged instruments, are financial derivatives that let traders control much larger positions than their initial investment would normally allow. By putting down a fraction of the trade value as margin, you gain access to amplified exposure,…
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…
A margin call happens when your broker warns that your trading account no longer has enough margin to cover open positions. It’s the broker’s way of saying: “Add funds now, or your trades will be closed.” Margin calls usually strike…
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…
Forex brokers, crypto platforms, and CFD brokers have something in common, they all make money by lending capital to traders through leverage. These brokers make more money than any other type of broker and the reason for that is the…
Short selling is always done with borrowed money — and that’s exactly why leverage plays such a big role. When you short a crypto coin, a stock, or a forex pair, you’re not just betting on a price drop, you’re…
Yes, whenever you trade with leverage in forex, crypto, or stocks, you always pay back the amount you borrowed from your broker. This happens automatically when you close the trade, whether you end in profit, loss, or break-even. You’re never…