Tradeviz Review: Do you think trading requires you to have all the capital at the same time? If you’re someone who believes that in order to trade in the stock market, you need to sell your home and land, then you’re completely wrong.
One of the major things that are required for trading is the acumen to manage your finances. Leverage plays a very important role when it comes to trading in the stock market. Not only does leverage give you a higher capital, but it also gives you the opportunity to make the right trades and gain from them.
Whenever you go ahead and choose a brokerage platform, you must understand to find out the leverage that they’re providing. Tradeviz offers an excellent leverage option based on the type of account you choose.
Let us know a little bit more about how actually leverage helps us.
Understanding the finance behind leverage
There are two different firms that are trading at $20 and $30 respectively. Now the amount of funds that are available to you is $1000.
You have two options. Either you can buy 50 quantities of $20 stock or 33 quantities of 30$ stock.
Here comes the role of leverage.
What if I tell you that you can make your $1000 five times more than what its face value is? Not only that, but you can also go ahead and improve on the chances of gaining a better profit.
You might be asking me how? It’s done by leveraging the capital that you have.
Suppose the leverage provided by the brokerage platform is five times.
So the current capital becomes $5000. On a product basis, you can increase the amount of stock that purchasing both stocks A and B.
This way, when you’re making a profit, the profit amount also increases.
The advantage of leverage is that you are increasing your profit percentage.
Previously, if you were making a 10% profit on $1000 now the same point movement in both stocks and, B will help you to make higher profits.
You might be wondering how.
Profits are calculated as the price difference multiplied by the quantity purchased.
Using leverage, the quantity of stocks being purchased is more. As a result, the profit increases.
But let us not forget that the face value remains $1000 itself. It’s just that you are trading with $5000.
Tradevizoffers some of the most exciting leverage options. Based on the type of trader you are, you can have leverage options starting from 200X to 400X.
As a trader, leverage becomes an important part while making the right moves. If you’re not able to make the right position, then the leverage can also wipe out your entire account.So, before you go ahead and jump into leverage you must be pretty sure that the position you are taking is right.Being confident in it will only help you to grow your funds.
Selecting the right brokerage platform with excellent leverage options can only improve your chances of building your empire quicker. If you haven’t really started with Tradeviz, we would suggest you sign up for your account right now.
Related CTN News:
Basic Home Security Camera Installation
8 Browser Security Add-ons for Chrome
Are You Using Some Of The Most Common Passwords Worldwide?