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HOW DOES LEVERAGE WORK? GIBRALTAR FX

 

Leverage enables you to get a much larger exposure to the market you’re trading than the amount you deposited to open the trade.  

Leverage is a key feature of a trading platform, and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio for greater position size, and to make your capital grow faster.

Leverage works by using a deposit, known as margin, to provide you with increased exposure. Essentially, you’re putting down a fraction of the full value of your trade – and Gibraltar FX is providing you the rest. Our products allow traders to gain exposure to major cryptocurrencies, such as Bitcoin and Ethereum among others, without tying up lots of capital.

 

Gibraltar FX is an advanced, award-winning margin trading platform offering a wide variety of Bitcoin-based CFDs with added leverage and both long and short positions on stock indices, commodities, forex and cryptocurrencies.

 

Our products allow traders to access a vast array of trading instruments and build a diverse trading portfolio, without tying up lots of capital

 

 

BTC/USD TRADE EXAMPLE

 

For example, you want to buy 10 Bitcoins at a price of $10,000.

To open such trade with a traditional exchange, you would be required to pay 10 x $10,000 for a position of $100,000 (ignoring any commission or other charges). If the Bitcoin price goes up by 5%, your 10 Bitcoins are now worth $10,500 each.

If you choose to sell, then you’d have made a $5,000 profit from your original $100,000 investment.

 

 

1:100 LEVERAGE TRADE WITH GIBRALTAR FX

 

Here you’d only have to pay 1% of your $100,000 position, or $1,000 to open such trade. If the Bitcoin price rises by 5%, you would still make the same profit of $5,000, but at a considerably reduced cost.

That means that profits can be hugely multiplied.

 

                                                                                                                                     

BEBNEFITS OF USING LEVERAGE

 

 

  • Magnified profits

You only have to put down a fraction of the value of your trade to receive the same profit as in a conventional trade with any other exchange.

 

  • Gearing opportunities

Using leverage can free up capital that can be committed to other investments. The ability to increase the amount available for investment is known as gearing.

 

  • Gaining from the market fall

Using leveraged products to speculate on market movements enables you to benefit from markets that are falling, as well as those that are rising.

 

 

 

 

Contact Us

World Trade Center, 1st Floor Room 226, 6 Bayside Road, Gibraltar GX11 1AA, Gibraltar

clientservices@gibraltarfinancial.net

1-888-207-6904