. Trading Conditions & Charges | Forex Pairs | Trading Hours

margin leverage

WHAT IS LEVERAGE IN TRADING TERMS?

Leverage is a kind of loan or borrowed money usually provided by the broker. Traders using leverage means that a trader can take a lager position without actually paying the whole upfront amount, but the profit will be calculated on the whole value of trade. It helps the trader to get a larger exposer in the market and magnify their potential to make bigger profits.

Leverage is one of the biggest advantages a trader gets while trading CFDs. It is a very powerful tool, and professional trades use leverage to take advantage of small price movement to produce greater returns on their investment.

Leverage is expressed in the form of ratios like 50:1, 100:1, 400:1 that means if your broker allows you 400:1 leverage ratio, you need only 1000 dollar in your trading account to take positions for 400,000 dollars.

What is Margin in Trading Term?

There is a very small difference between leverage and margin, but both are a type of debt provided by the broker. Margin is defined as the minimum balance required by the trader in his trading account to open a leveraged position.

Generally, there are two types of margin in trading terms: initial margin and maintenances margin, where the initial margin is the amount needed by the trader to use leveraged products. The initial margin is also known as a minimum deposit or deposit While maintenances margin comes in play when you have an open leveraged position. If your trade starts to incur losses, then maintenances margin is the minimum amount needed to keep that position open.

One of the best advantages of margin is that it enables traders and investors to diversify their portfolio by buying on margin that helps to spread their capital even further. It also helps them to get higher market exposer with limited capital.

So, what is The Difference Between Margin and Leverage?

  • Leverage is a kind of debt which trade takes to open a larger position
  • once you have taken a leveraged position, then there is no extra charge for leverage till the position is closed.
  • Margin is like a collateral deposit held by the broker to hold an open position
  • Trades have to maintain the initial margin as well as the maintenance margin to keep the position open in case the trade incurs losses.

Benefits of using the leverage

Leverage is a very powerful tool if used cautiously. It has many benefits such as

    • Magnified profits -it helps trades to magnify their potential to make a profit on smaller price movements.
    • Greater exposer -It allows traders to take a larger position with very limited capital.
    • Greater spread of capital- using leverage traders can spread their capital to achieve a more diversified portfolio
    • Shorting the market- you can use leveraged products to speculate on price movement, and trading via CFDs enables you to trade market from both the side, long as well as the short side.

Leverage Risk and Margin Monitor

Using leverage can help you to magnify your profits from a relatively small investment at the same time you are exposed to higher risk and can incur more significant losses if you fail to apply proper risk management.

Trading with leverage gives you various benefits, but it has several drop backs. Also, when you trade using leverage, you give up the shareholder privileges because you don’t own the underlying asset.

At CSFX, you can control your risk by monitoring your margin. Used margin refers to the margin you have used to open a position, and free margin refers to the amount left in your trading account.

Capitalstreet FX also provides margin call alerts. Suppose you open a position, and it moves against you, then capital street may ask you to add some additional money if you want to keep the position open. This is known as Margin Call, and you can either you can add funds, or you can choose to exit your position.

What is Stop-loss Level in Trading?

Stop-loss is a risk managing tool which helps traders to manage their risk. It helps the trader to automate their trade, that means a trader can set a level at which the open position will get automatically closed. It helps the trader to minimize their risk if the trade suddenly goes against them.

AUD/CAD
AUD/USD
CHF/JPY
EUR/DKK
EUR/NOK
EUR/SEK
GBP/AUD
GBP/JPY
GBP/USD
NZD/USD
USD/DKK
USD/NOK
USD/SGD
EUR/ILS
PLN/JPY
USDZAR
AUDUSD
GBPCHF
EURUSD
USDCHF
CHFJPY
USDNOK
NZDJPY
AUD/CHF
CAD/CHF
EUR/AUD
EUR/GBP
EUR/NZD
EUR/TRY
GBP/CAD
GBP/NZD
NZD/CAD
USD/CAD
USD/HUF
USD/PLN
USD/TRY
GBP/ILS
SEK/JPY
USDRMB
ZAR/JPY
CHFIJPY
USDCAD
NZDCAD
EURGBP
NZDUSD
EURNOK
AUD/JPY
CAD/JPY
EUR/CAD
EUR/HUF
EUR/PLN
EUR/USD
GBP/CHF
GBP/SEK
NZD/CHF
USD/CHF
USD/JPY
USD/RUB
USD/ZAR
NOK/JPY
TRY/JPY
USDINR
GBP/TRY
EURCHF
NZDCHF
GBPUSD
EURJPY
USDSEK
AUD/NZD
CHF/HUF
EUR/CHF
EUR/JPY
EUR/RUB
EUR/ZAR
GBP/HUF
GBP/SGD
NZD/JPY
USD/CNY*
USD/MXN
USD/SEK
USD/ILS
USDTRY
USDHUF
EURHUF
EURCAD
AUDCHF
USDJPY
GBPPY
EURSEK
USDMXN
AUD/CAD
AUD/USD
CHF/JPY
EUR/DKK
EUR/NOK
EUR/SEK
GBP/AUD
GBP/JPY
GBP/USD
NZD/USD
USD/DKK
USD/NOK
USD/SGD
EUR/ILS
AUD/CHF
CAD/CHF
EUR/AUD
EUR/GBP
EUR/NZD
EUR/TRY
GBP/CAD
GBP/NZD
NZD/CAD
USD/CAD
USD/HUF
USD/PLN
USD/TRY
GBP/ILS
AUD/JPY
CAD/JPY
EUR/CAD
EUR/HUF
EUR/PLN
EUR/USD
GBP/CHF
GBP/SEK
NZD/CHF
USD/CHF
USD/JPY
USD/RUB
USD/ZAR
AUD/NZD
CHF/HUF
EUR/CHF
EUR/JPY
EUR/RUB
EUR/ZAR
GBP/HUF
GBP/SGD
NZD/JPY
USD/CNY*
USD/MXN
USD/SEK
USD/ILS
Crude Oil
Corn
Heating Oil
Cotton no. 2
Copper
Gold
Soybeans
Gasoline
Brent Oil
Silver
Wheat
Coffee C
Palladium
Platinum
Natural Gas
Sugar no. 11
Cocoa
5 Year US T-NOTES
JAPAN GOVT BOND
10 Year US T-NOTES
30 Year US T-BOND
EURO-BUND
Financial Select Sector SPDR
MSCI Brazil Index Fund
Dow Jones U.S. Real Estate Index Fund
FTSE China 25 Index Fund
India Earnings Fund
MSCI Malaysia Index Fund
MSCI Emerging Markets Index Fund
Energy Select Sector SPDR
MSCI South Korea Index Fund
MSCI Taiwan Index Fund
MSCI Mexico Index Fund
S&P 500 VIX Short-Term Futures ETN
Market Vectors TR Gold Miners
MSCI Canada Index Fund
MSCI Germany Index Fund
MSCI Australia Index Fund
MSCI Hong Kong Index Fund
Dow Jones U.S. Home Construction Index Fund
Materials Select Sector SPDR
MSCI EAFE Index Fund
MSCI Singapore Index Fund
GROUPON
AMAZON
CHECK POINT
TEVA
AT&T
CATERPILLAR
WALT DISNEY
GOLDMAN SACHS GROUP
LINKEDIN
PROCTER & GAMBLE
TWITTER
HSBC
BARCLAYS
BRITISH AMERICAN TOBACCO.UK
TELEFONICA
INDITEX.ES
GAS NATURAL.ES
BAYER
SAP.DE
DAIMLER.DE
FIAT CHRYSLER.IT
TENARIS.IT
UNICREDITO
BNP PARIBAS.FR
VALLOUREC.FR
APPLE
INTEL
YAHOO
PERRIGO
BERKSHIRE HATHAWAY.B
CHEVRON
EXXON MOBIL
JOHNSON & JOHNSON
MCDONALDS
POTASH
ALIBABA
ROYAL DUTCH SHELL-A
RIO TINTO.UK
ANGLO AMERICAN.UK
BBVA
BANCO POPULAR.ES
BANCO SABADELL
ALLIANZ
DEUTSCHE TELEKOM.DE
ORANGE.FR
SAIPEM.IT
GENERALI ASSICURAZIONI
SOCIETE GENERALE.FR
CARREFOUR.FR
TOTAL
SANOFI-AVENTIS
CISCO SYSTEMS
FACEBOOK
TESLA
MANCHESTER UNITED
BANK OF AMERICA
CITIGROUP
GENERAL ELECTRIC
JP MORGAN CHASE
MORGAN STANLEY
VERIZON
LOCKHEED MARTIN
BP
GLAXOSMITHKLINE.UK
TESCO.UK
IBERDROLA
ACCIONA.ES
E.ON
DEUTSCHE BANK
RWE.DE
CREDIT AGRICOLE
ALCATEL-LUCENT.FR
UNIONE DI BANCHE.IT
TELECOM ITALIA
ENI
DANONE.FR
ENGIE.FR
GOOGLE
MICROSOFT
AMDOCS
AMERICAN EXPRESS
BOEING
COCA COLA
GM
KING DIGITAL ENTERTAINMENT
PFIZER
WAL MART
UNITED TECHNOLOGIES
VODAFONE
BHP BILLITON.UK
BANCO SANTANDER
REPSOL
ENDESA.ES
SIEMENS
BASF.DE
BMW.DE
BANCA POP MI.IT
ENEL.IT
INTESA SANPAOLO
ACCOR.FR
PEUGEOT.FR
AUD/CAD
AUD/USD
EUR/AUD
EUR/JPY
EUR/SEK
GBP/CHF
NZD/CAD
USD/CAD
USD/MXN
USD/SGD
AUD/CHF
CAD/CHF
EUR/CAD
EUR/NOK
EUR/USD
GBP/JPY
NZD/CHF
USD/CHF
USD/NOK
USD/TRY
AUD/JPY
CAD/JPY
EUR/CHF
EUR/NZD
GBP/AUD
GBP/USD
NZD/JPY
USD/ILS
USD/SEK
USD/ZAR
AUD/NZD
CHF/JPY
EUR/GBP
EUR/PLN
GBP/CAD
NOK/SEK
NZD/USD
USD/JPY
USD/CHN
Spot Gold ($)
S&P500
DAX 30
DJ EURO STOXX50
NIKKEI225
CHINA A50
SPI 200
NASDAQ 100
FTSE 100
SMI
IBEX 35
NIFTY50
DJ 30
FTSEMIB
MSCI
HSI
DOLLAR INDEX
OMX30
NIKKEI225
RUSSELL2000
CAC 40
AEX