Advantages of Leveraged Trading
Depending on customer needs and customer's current situation, the company can provide precious metals trading leverage up to 50 times. The trading leverage of precious metals is 50 times. The advantage of leveraged investment is that it can improve the efficiency of capital use. If there is no leverage, investors have to trade in full. In addition, leveraged trading also magnify the earning. Investing in spot gold trading for 1 lot, as long as the gold price fluctuates by 1 dollar, you may get about 3% yield. If there is no leverage, investing in spot gold will never get such a high yield.
How to Manage Leveraged Trading Risk
Leveraged trading can lead to high returns but also increases risks. Leveraged trading has a liquidation mechanism. When huge loss occurs and the account equity is lower than the liquidation margin, investors will be forced to liquidate their positions. In order to reduce the risk, investors can set a limit order to stop loss, so that they can better control the scope of the loss.