Trading with leverage on cryptocurrencies or forex is a popular method of investing that is very popular on the SFX platform. Therefore, for those who want to know more about it, I have prepared this SimpleFX leverage trading guide.
Table of contents:
1. How Leveraged Trading Works On SimpleFX
Simply put, this is a situation where you borrow funds from us to increase your position size. SimpleFX leverage trading allows you to earn more profits with less capital invested. This means that you can open positions with a margin that may be as little as a fraction of the value of the order. At this point, SimpleFX lends you the missing funds.
To start trading with SimpleFX leverage, you only need a free demo or live account. Remember to verify your account before starting the transaction – read more about our security solutions to prevent you from fraud. Fortunately, SimpleFX secures trading accounts with negative balance protection. This feature automatically closes your trades to protect your account from reaching a negative balance.
2. SimpleFX Leverage Trading Offer
The maximum leverage level is defined by the asset class you trade. Our trading platform offers several leveraged trading options:
- Forex – up to 1: 500
- Cryptocurrencies – up to 1: 1000
- Stocks – up to 1:50
Leverage is expressed as 1 to [number]. You simply multiply your own funds by [number]. The result is the amount you can trade after applying SimpleFX leverage trading. “Up to” refers to the maximum leverage, so you can set it at other lower levels.
Remember that trading with leverage increases your potential profit and risk. Before you trade with leverage, read more about trading with leverage and always exercise moderation and caution.
For example, if you have a $600 deposit but want to open a BUY order on a $1,000 forex pair, you can do it with leverage. Then you borrow the remaining $400 from SimpleFX and you can open the desired order. You get a position value of $1,000.
3. Does SimpleFX Charge Leverage Fees?
No – it’s one of the best things! Our platform does not charge commissions and does not charge interest for the use of leverage. The only fees are swaps/rollovers.
4. SimpleFX Leverage Trading Guide
Now I will show you how to open a position with leverage. For example, I will use a BTC margin account and want to open a position on DOTUSD. So I will use SimpleFX leverage for cryptocurrencies – I will go wild with money and set 1:1000.
4.1. Leverage Trading VS. Non-Leverage Trading on SimpleFX
You see opening an order without leverage in the left image below the page. It says in red that you can’t open it at this unit level. You just don’t have enough funds.
You see the same Polkadot vs. US Dollar (DOTUSD) order on the right, but here I’ve used SimpleFX leverage x1000 on cryptocurrencies. Not only can I process desired jobs, but I can also buy more units with increased funds.
4.2. Setting Leveraged Level
Now it’s time to fire the lever. Go to the main page of SFX Web Trader and select the menu list from the top left corner. Press Accounts & Deposit.
Then select the account where you have a deposit or want to make a deposit. That is, simply your desired trading account. You will see the “Leverage” section. After pressing it, you will go to the settings. Select the desired level and press “Confirm”.
4.3. Opening Leveraged Orders
You will now return to the web trader’s main view. Look at the list of instruments and choose the symbol that interests you. Then select “Open chart” and “New order”. Set up all the details and press “Submit”. Now your leveraged order is open!