What is Leverage?
Support Team
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**Leverage in 'UTO Capital'**
UTO Capital offers to its clients leverage in forex as a way for the traders to borrow capital to gain a larger exposure in the forex market (Magnified Amount). A client has the ability with a limited amount of capital, to control a larger trade size. This could lead to bigger profits and losses as they are based on the full value of the position.
Trading with leverage in forex, which is also referred to as forex margin, means you can magnify profits if markets move in your favor, as well, you can also lose all your capital should markets move against you. This is because profits and losses are based on the full value of the trade, and not just the deposit amount.
Forex trading comes with some of the lowest margin rates in the financial markets.
To illustrate the above, see below our example: 1:200 Leverage
A client funds their trading account with $1,000 and their leverage being used is 1:200, this means their overall trading volumes would be:
$1,000 * 200 leverage = $200,000 representing their maximum trading amount in their account