What is leveraged trading?

Most leveraged trading uses derivative products, meaning you trade an instrument that takes its value from the price of the underlying asset, rather than owning the asset itself. With us, you can trade derivatives via CFDs.

What is a leveraged ETF?

Leveraged ETFs are exchange-traded funds that use a combination of derivatives and debt instruments to double or triple the movement of an underlying asset or index that it tracks.

What is a leverage factor (multiplier)?

When a broker gives you a leverage factor (multiplier) of 1:10, 1:20 or any other, they’re referring to the amount of times that you’re buying power is amplified to. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open.

What is derivatives trading and how does it work?

For individual traders, derivatives trading has opened up a wide array of markets for them, allowing them to speculate when the price of something will rise or fall. However, traders must fully understand derivatives markets before they can trade them, as well as the different types of derivatives and derivative products that are available.