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With major financial regulators throughout Europe, Singapore and now Australia tightening the level of leverage brokers can offer when trading Forex and CFDs, now is a good time to look what exactly leverage is and how it impacts Nigerian traders.
What is Leverage
Leverage involves using borrowed money to enhance the trade that you have on. It increases the users’ buying power, thereby increasing the potential returns when trading is successful. However, Leverage can also amplify the potential losses when price movements are unfavourable and its misuse is one of the most common mistakes beginner traders make.
Suppose you have a $1000 trading account, and you buy a stock priced at $10 with a leverage of 100:1. That $10 stock, after adjusting for leverage, is actually worth $1000. Now imagine what happens when that stock price decreases by 20%. The value of your holding, after leverage is now only worth $800, i.e. a decrease of $200. This m
Sock puppets and Lifeline ads: Welcome to the wild world of copy trading
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Sock puppets and Lifeline ads: Welcome to the wild world of copy trading
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American actor Alec Baldwin is hamming it up with a sock puppet in advertisements playing on high rotation on social media to explain a hot new trading trend – copy trading.
He explains that it s oh-so-easy to make a motza trading crypto or shares even if you re a hipster food blogger and know nothing about the market.
Hollywood actor Alec Baldwin, with his sock puppet, in the eToro ad.