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What is leverage in crypto trading? Leverage (or margin) trading is a more advanced method than just using your deposited capital for buying or selling cryptocurrencies. When trading on leverage, you are borrowing funds from a broker, or in the case of cryptocurrencies, from other traders or the exchange itself.
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Leverage trading is a tool that allows you to trade with a lower initial investment, multiplying both profits and losses, so there is a high degree of risk involved. Contents Trading Cryptocurrency.
TradeStation Global is a brand of TradeStation International Ltd, which is based in the UK and is regulated by the top-tier Financial Conduct Authority (FCA). TradeStation Global is a combined product offered by Interactive Brokers (IB) and TradeStation for clients outside the EU/EEA. Here are its most important elements:
Crypto leverage trading is a tool for investors to open a long or short position that is much larger than their own capital by leveraging borrowed funds in a transaction. This allows the person to maximise potential profits by increasing their buying power using a small amount of money.
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TradeStation International Ltd is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom (registration number 445531). TradeStation International Ltd acts as an introducing broker to TradeStation Group's affiliates and non-affiliates, such as Interactive Brokers (U.K) Limited.
Leverage works through a cryptocurrency exchange or brokerage granting you the right to trade positions that are multiples of your trading capital. You might for example have $1,000 of trading capital. If you executed a regular (non leveraged) trade that realised a 10% gain you would make $100 (1,000*0.10) and end up with $1,100.
The basic of cryptocurrency leverage trading is to allow you to boost your potential profit and also your losses by 5 and 100 times the amount you need to enter a trade. Therefore and for instance, if you want to invest 10,000 dollars in a stock with a leverage ratio of 1:10 and a margin of 10%, you only need to invest 1,000 dollars.
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TradeStation International Ltd is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom (registration number 445531). TradeStation International Ltd acts as an introducing broker to TradeStation Group's affiliates and non-affiliates, such as Interactive Brokers (U.K) Limited.
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Additional Information on TradeStation Securities International Pricing. Commissions: Available only to non-U.S. residents. $5 per equities trade applies only to the first 10,000 shares per trade — for each order of more than 10,000 shares, a $0.005 per share charge will be assessed on the number of shares in excess of 10,000. Direct-routed equity orders will be charged an additional $0.005 per share.
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For investors, leverage in crypto trading is the “firm spot”. With a lever you can lift anything, provided the spot is firm enough. In the market, it is common to “throw a sprat to catch a herring”.
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