CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work,
and whether you can afford to take the high risk of losing your money.
Customise Leverage to Your Needs
Bigger isn't always better. You can customise the size of leverage you're comfortable using on your trading account. You can start anywhere between no leverage and 500:1. Why wouldn't you go as big as possible? Because higher leverage means more opportunities but also higher risk. The leveraged account can turn against you if the market does. If you're unsure how to use leverage, read more about it in our Education Central or sign up to ask our customer support team.
What is Leverage?
Leverage is when you request debt from a broker to increase your trading power by a certain amount. This is done by lowering the margin blocked for one position, which makes more funds available for trading.
Why is Using Leverage Risky?
Leverage can help you magnify your trading balance and open up to more opportunities but remember, the higher the leverage, the greater the effect fluctuation has on your profits and losses. By multiplying the trading amount, you can potentially multiply your profits even from small market movements. However, trading with leverage should be combined with a risk-aware approach and strict money management, to minimize the possibility of large losses due to unexpected market movements.
Always Combine Leverage with Risk Management
You can use leverage to your advantage if you implement a well-thought-out risk management strategy. Risk management tools include margin call, stop out, take profit, stop loss orders, and position-sizing. Learn more about risk management and risk management tools in the Ec Markets Trading Academy.
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Ec Markets Limited is authorised and regulated by the Seychelles Financial Services Authority ('FSA'), License No. SD009. Ec Markets Limited is a Seychelles Investment Firm registered with the Registrar of Companies in Seychelles under number: 8413793-1. The trading address is Suite 4B, Global Village, Jivan's Complex, Mont Fleuri, Mahe, Seychelles.
Ec Markets Group Ltd is authorised and regulated by the Financial Conduct Authority ('FCA'), FRN: 571881. Ec Markets Group Ltd is incorporated in England and Wales (No. 07601714). The trading address is 3rd Floor, 30 City Road, London, United Kingdom, EC1Y 2AY.
Ec Markets Limited is authorised and regulated by Mauritius Financial Services Commission ('FSC'), License No. GB2100130. Ec Markets Limited is incorporated in Republic of Mauritius, (No. CN188565 GBC). The trading address is Silicon Avenue, 40 Cybercity The Cyberati Lounge, c/o Credentia International Management Ltd, Ground Floor, The Catalyst 72201 Ebene Mauritius.
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Investing in Ec Markets derivative products carries significant risks and is not suitable for all investors. You could lose more than your deposits. You do not own, or have any interest in, the underlying assets. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. For more details, please visit our legal page.