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…
The liquidation price is the exact price level where your broker or exchange will automatically close your position to prevent further losses. In other words, it’s the point where your margin can no longer cover the risk. At Leverage.Trading, we…
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…
Yes, you can lose more money than you invest with leverage, depending on how your broker is set up. That’s why understanding margin rules and protections is the single most important step before placing a leveraged trade. The catch? Most…