Understanding Leverage at Excent Capital
Leverage is a powerful tool that allows you to control a larger position size compared to your initial investment. However, it's crucial to understand the risks involved before using leverage, as it can amplify both your potential profits and losses.
Maximum Leverage Offered at Excent Capital:
The maximum leverage offered varies depending on the instrument you're trading:
- 1:100: This applies to major FX pairs, minor FX pairs, indices, and commodities.
- 1:10: This applies to stocks.
- 1:5: This applies to cryptocurrencies.
Example:
Let's say you want to buy $10,000 worth of EUR/USD (a major FX pair) and have $1,000 available in your account. With a leverage of 1:100, you can control a position worth $10,000 by only depositing $1,000 (10% of the total position value).
Important Considerations:
- Higher leverage does not equate to guaranteed profit. It can also amplify losses if the market moves against your position.
- Manage your risk carefully: Use stop-loss orders and maintain sufficient funds in your account to meet potential margin calls.
- Understand margin requirements: The margin requirement is the minimum amount of your own capital you need to deposit to maintain a leveraged position. Higher leverage typically translates to lower margin requirements, but also carries greater risk.
Finding Leverage Information:
- Platform: The specific leverage offered for each instrument is readily available on the Excent Capital platform.
- Customer Support: Our dedicated support team is always happy to answer any questions you may have regarding leverage for specific instruments.
Remember:
- Leverage is a double-edged sword. Use it cautiously and with a well-defined risk management strategy.
- Conduct thorough research and understand the potential risks associated with leverage before employing it in your trading activities.
By understanding the concept of leverage and the specific limits at Excent Capital, you can make informed decisions and approach leveraged trading with greater awareness and risk management.