The leverage is a ratio between the trader’s own funds and borrowed funds, which a trader borrows from his broker. 1:100 leverage means that for a transaction you must have a trading account with amount 100 times less than the sum of the transaction.
Example: a trader chooses the 1:500 leverage and has 200 euros on his account. Leverage 1:500 allows him to buy a contract worth 100.000 euros.
Some examples of leverage for R StocksTrader accounts:
- US Stocks (Deposit from 10,000 USD) - up to 1:20
- US Stocks - 1:2
- CFDs on US stocks - up to 1:20
- CFDs on EU stocks - up to 1:5
- Currencies - up to 1:500
- CFDs on Indices - 1:100
- CFDs on metals - 1:250 (XAGUSD), 1:500 (XAUUSD)
- CFDs on oil - 1:20
Important:
- Note that leverage varies for different accounts and clients. That's why it is difficult to specify exact leverage ratio. Pay attention to the leverage specified in your account.
- Two days before a company's earnings report is released, the leverage for new trades on its stocks in R StocksTrader is automatically reduced. Existing open positions are not affected. The leverage is restored to its original level the day after the report is published. Read the article "Impact of Earnings on leverage" with detailed example how leverage ratio change before and after Earnings are released.
Useful links:
Read how Stop Out works here.