Leverage
What
is leveraged trading?
Trading on leverage means taking exposure to an underlying equity, index, commodity or currency pair for a fraction of the cost of buying the asset outright. For example, £1,000 invested in a 10 x leveraged product could provide exposure to the equivalent of £10,000 invested directly in the Underlying Asset. In this simplified example, if the Underlying Asset increased 10% to £11,000, your product would rise by approximately £1,000, translating the 10% rise of the Underlying Asset into a 100% rise in the product. However it also means that if the Underlying moves against you, the losses will be amplified too.
Fix your risk while leveraging your returns
Leveraged returns do not have to come at the expense of unlimited risk. Our range of fixed risk trading products provide the opportunity to enhance returns in rising, flat or falling markets without ever risking more than you invest. The range is broken down into five different types which enable you to tackle the markets in different ways, over different time horizons, and with different levels of gearing:
|
Objective |
Leverage the daily rise or fall |
Simple short term trading with a built in stop loss |
Trading tools for longer term trades with no knock out feature. |
Lower cost, capped trading tools for executing a specific range. |
|
Term |
Intraday |
1 to 3 months |
1 to 12 months |
1 to 12 months |
|
Range |
Daily Long and Daily Short on: - Indices - Commodities - Currency pairs |
Long and Short Turbos on: |
Call and Put Covered Warrants on: |
Call and Put Spread options on: |
|
Risks |
- Capital is at risk on a leveraged basis |
- Capital is at risk if the underlying hits the knock-out
barrier |
- Capital is at risk if the underlying closes below (call) or
above (put) the strike price at expiry |
- Capital is at risk if the Underlying closes below the Lower
Level for a call Spread or above the Higher Level for a Put Spread at expiry
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More information |
