Leverage | Trading Terms

[@jonanddy]

So basically, leverage is a synonym for a loan with an interest rate?

[@TalonMerlin777]

Thankyou saved me watching the video.

[@magnumboom4475]

Good video. Proof that simple explanations, not assuming the listener or student has any preconceived ideas, is probably the best approach to these tutorial videos. if only they all took this approach.

[@dilly2047]

You explain everything so well, making me more confident and a better trader

[@MrSamMrLonely]

Pls, put the videos in the correct order in the playlist. Thanks for the videos.

[@abehartshorne6028]

Please do

[@fijillian]

Awesome. Keep them coming!

[@rockjawn]

Loved this explanation even 5 years later! Thank you so much!

[@Trading212]

Glad it was helpful!

[@jonny_exotic2575]

Thank you , very easy to understand and follow

[@jackmiller9926]

Can you take out leverage on a stocks and shares invest account? or a stocks and shares isa? or is margins only a CFD element?

[@oscarrose7148]

I have been looking for this video for so long. Thanks so much, you made it quite simple. 🖖

[@thamsanqajamella8022]

Yes. So, exactly how do I go about selecting the leverage factor that I wish to use on the 212 website?

[@Trading212]

It is defined for all Forex and CFDs instruments and available in the "Margin" column at www.trading212.com/en/Trading-Instruments. Also included to the "Instrument details" section in the trading app.

[@avaice2013]

So there is no way to lower or higher the leverage to our needs?

[@gagbomb633]

Great video! I have learned so much from you!

[@zhanezar]

great video , you guys have the best trading app , please continue providing videos

[@java2403]

Hello. Can a trader use leverage to short a stock ?

[@andreasnico4330]

So if I have 500 account and I want to place a trade with 10,000 units how can I place leverage where it will only be 10 or 100 I place on the trade

[@mcallistergovender9677]

Great vid

[@Coachjaywilliams]

Awesome videos David, quick question what is the whiteboard software you're using?

[@davidjones2452]

Hi, I use a MS Surface Pro PC/tablet thing so is it just the whiteboard included in that, plus the pen.

[@10secondsrule]

Thank you for posting these videos ! They are really really helpful.

[@randomfacts4353]

What's the difference between lavage and margin trading

[@Lorant1984]

Sorry about the question, but why is the leverage displayed in the app as 1:5 instead of 5:1?

[@rowlandturner6011]

Good easy to understand explanation

[@ohwillyum3997]

Very helpful, thank you kindly.

[@DBZTheLegend]

What is the website for the trading you are using? I would really like to use it. Thank you!

[@Trading212]

Hi Diego, the trading app is Trading 212. You can open a free Practice Account within seconds at www.trading212.com/en/Free-FOREX-Practice-Account-GBP.

[@francishayat6476]

Hi, I have been using the demo account for a few weeks and am thinking of opening an account. Is it possible to reduce the leverage to 1:1 to begin with to reduce risk ?

[@Trading212]

Hi Francis, for the CFD instruments that option is unavailable. We also offer investing in real shares and ETFs without leverage, so you may want to take a look - www.trading212.com/en/Free-Stock-Trading.

[@walltap]

very clear, thank you!

[@qasimkhan7453]

Can you show a example on trading 212 using leverage and where to find it on the plat form and how to opt in

[@Trading212]

Hi Qasim, the leverage is applied automatically when trading CFD instruments on Trading 212. It is listed at www.trading212.com/en/Trading-Instruments (columns "Margin - Retail Clients" and "Margin - Professional Clients").

[@TheGwarGaru]

Thank you!

[@leoncampa]

How does one leverage on the trading 212 platform?

[@Trading212]

Hi Leon, the leverage is automatically applied when you trade Forex and CFDs on Trading 212.

[@feastaaccosta1802]

Trading 212

[@guisthename9316]

How can I change the leverage on the app

[@Trading212]

The leverage can't be manually adjusted but varies for each instrument we offer. You can find the exact ratio in the "Instrument Details" section.

[@khanlehman]

Couldn't we have a more respectable, legible text?

[@Life-zg8qz]

can u really not read that lol

[@aronkay5274]

Great Video David!, do you have to leverage when trading commodities market?

[@Trading212]

Hi Quinton, the commodities are traded on margin (with leverage) on Trading 212.

[@hoastbeef1202]

its also a great show!

[@alejandroavila9940]

Do you guys have a video about futures market?

[@Trading212]

To be included in our to-do list. Hit the notification button to make sure you won't miss it 🔔

[@TrueZill]

So if you have a £100 margin and its leverage is 5:1 (500), do you pay %5 on the £100 or the £500?

[@davidjones2452]

Hi, it's your overall position value, so £500 in your example.

[@ashley_ash7239]

Leverage is given in ratios, can u please explain it further.

[@Trading212]

Hey, there! The use of leverage allows you to purchase more units of your desired instrument than your available funds. For example, if you have deposited 100 USD in your account and you wish to trade with an instrument with a leverage of 1 : 10, you can open a position of up to 100 * 10 = 1000 USD in value.

[@starkarabil9260]

thanks!

[@PraveenKumar-hf9io]

I am an INDIAN ...can I trade in foreign stocks .....like Dow and Jones....and in currency exchange...

[@paul-fl6mu]

So a x20 leverage on an exposure of $1,000 means I would only have to invest $50 (but borrow $950). If my hunch about the market is right and the share price sky rockets I can make a big profit for very little investment. But if I'm wrong and either I don't deposit more to keep the position and the exposure goes to, say, $1000 - (75% of $50) then my position will get liquidated and I will only get around 25% of my initial investment back (at best)? I think I read there are laws which stop the trader from actually owing money - not sure?

[@mouhcinewakach5036]

excuse me I have a question, Does using leverage request some costs, fees or interests that I should pay to the broker?

[@Trading212]

Hello Mouhcine, interest swap is due when trading on margin.

[@mastersilence3446]

Trading 212 so if you buy SOXL for 2,000$ when I sell the stock do you have to pay interest on it??

[@onetwo4833]

Do I misunderstand or did he basically explain how leverage can actually be used to reduce risk (if used properly) ?

[@TheGoomba361]

Lmaoo his hand writing

[@iGearhead]

Could use more!

[@johngant3553]

This why I trade mostly pink sheet . Because I hold so many shares for less . Like 500 I own like 3M shares yes risky but if I'm right .

[@pukhtoonzNYC]

It’s type of loan that gives you more power into buying, but if you lose you will end up being in debt 😅

[@carlhilber2275]

Half these comments high key look fake

[@leanrambles7468]

Sorry but I still don't understand. Wouldn't everyone just got out and do the biggest leverage (hoping to win)and if they lost just walk away?! Only out of pocket £100 (e.g) With mortgage or cars they take the car or property from you if you don't make payments. Be helpful to understand that pragmatic side of leverage?

[@LEK-0525]

Just simply, leverage means getting competent investment profit with small amount of money on assets such as securiteis, funds, etc.