What is Leverage?
Leverage is a powerful tool for traders to help you expand your exposure to financial markets and maximize capital when you invest less.
Principle of Leverage Trading
Through leverage, you can borrow a loan from the dealer, significantly reducing the amount of capital you need to invest in a transaction.
Before you start trading, you need to prepare an initial margin, which is the deposit required when opening a position. When the number of positions remains the same, the greater the leverage used, the less the used margin occupied by each exchange, and the free margin increases, helping you to compete against greater risks.
If your trade starts to lose money, you will receive a margin call and you need to inject more funds to maintain the opening position. These additional funds are called maintenance margin.
