Leverage in the forex market is a very crucial part when it comes to trading. It enhances the capital prowess of the trader, thus letting him take better trades. Moreover, often the entry points are more than the capital present – under such a condition, leverage helps. Brokerage platforms like Royal Liston Group offer excellent leverage options for the traders – with their multiple leverage options. The secret behind leverage is that brokerage platforms infuse capital into your trades – which is why – an experienced trader has a higher leverage. As per reviews from different sources, the leverage options available cover a wide breadth of trading spectrum – thus making it seamless for traders – to trade.
In this article, we shall be discussing the different leverage options available at Royal Liston Group. We will also look into how leverage turns out to be a savior while trading in the forex market.
Why is leverage crucial in the forex market?
The Forex market is a very capital-intensive market. Under such a situation, not every trader will have the right amount of capital. Leverage in turn helps the forex market traders to grow their capital through a ballooning mechanism.
Let us understand how leverage works with this small example.
Suppose that you have a capital of $200. The trade that you want to enter will require you to invest around $2000. In an ideal situation, you won’t be able to take up the trade due to the lack of capital. But if you have leverage of 20X then you only would require just $100 from your account toenter the trade.
The mathematics behind it is quite simple. Using the $100 that you have and the leverage of 20X, your capital becomes $2000. So, we just 50% of your initial capital, you are able to take a trade that requires 20X more investment.
This is the true value that leverage brings when it comes to trading in the forex market. The major problem that traders face is that with the lack of capital, they always must make an entry that is somewhere lower to the optimal entry point. When it comes to trading in the derivatives, what it means is that traders need to enter at a lower strike price – compared to the right strike price.
Different leverage options available at Royal Liston Group
There are multiple leverage options available at Royal Liston Group. The leverage options are tied up to the type of account you choose. The main reason behind it is that for you to enjoy the leverage, the brokerage account invests some portion of the money into your trade.
The silver account type is for traders who are very new to trading. The leverage enjoyed by the traders who are using the silver account type is 200 times. The most experienced traders use the Platinum account who are into trading on a professional basis. The gold type of trading account is for traders having more than five years of experience in the capital markets. For both, the amount of leverage being offered is 400 and 300 times respectively.
The leverage options being offered enhanced traders’ confidence in selecting the bigger trades with smaller capital infused. Sign up with Royal Liston Group to experience the best trading features in 2023.