Forex trading involves huge capital investment. Often, it means that you would need leverage to trade in the forex market. What is important to note is that leverage is crucial, if you want to grow in the market – without losing out on your capital quite often.
Forex trading often involves higher risk – which is where selecting the right brokerage platform is important. A brokerage platform that understands your leverage needs, and keeps you a step ahead – is all that we need.
Shackecoins.com is one such brokerage platform that understands clients’ needs when it comes to leverage.
You might be wondering how leverage work.
In this article, we will dive a little deep into the topic of leverage & how Shackecoins.com offers excellent leverage products for its users.
What is leverage?
In simple words, leverage is taking credit from the broker. When there is a lack of funds to take a trade, leverage is the only option to boost your trades. It helps you to take big shots in trading, without using too much of your capital. It comes with the biggest advantage of protecting your capital – but, just a word of caution – when you are trading using leverage, you cannot afford to take wrong trades.
How does leverage work?
In mathematical terms, leverage works by bulging your investments. Suppose the leverage being Offered is 100 times the capital that you have with you is $300. Under this circumstance, suppose you want to take a trade that is worth $500. Then all you need to do is to spend $5 to take the trade.
How does that work?
Your $5 gets multiplied by 100, to become $500.
Now the return on the investment also increases. Suppose you make a profit of $20 on it, your profit percentage becomes 4 times, compared to less than 10% previously.
This is how leverage gives you the option to multiply your profit, yet not end up using all of the capital.
Understanding how Shackecoins.com helps Forex traders to play with leverage
This platform is really very important when it comes to offering leverages. One of the major reasons is that they provide differential leverage based on the account type you choose.
You can select multiple account types for yourself – starting from the beginner to the professional.
Based on the account after choosing you to have an of selecting the right leverage for you.
Delivery starts from as low as 100X and ranges as high as 500X.
The reason behind providing differential leverage depending on the type of account is completely based on the experience. Suppose an experienced trader is taking a position, the chances of him making a profit is quite higher.
On the other hand, if a beginner takes a position using leverage, he might end up losing a part of the trade which will impact his business.
The sadder part about leverage is once you are taking it, you are at a higher chance of wiping out entire capital if the trades go wrong.
Which is the reason why the leverage is based on the experience that you’re having.
Shackecoins.com turns out to be the most excellent brokerage platform when it comes to making winning trades. Have you signed up yet?