Leverage is a key feature of a FXHOARD trading platform, and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio for greater position size, and to make your capital grow faster.
Leverage works by using a deposit, known as margin, to provide you with increased exposure. Essentially, you’re putting down a fraction of the full value of your trade – and FXHOARD is providing you the rest. Our products allow traders to gain exposure to major cryptocurrencies, such as Bitcoin and Ethereum and others, without tying up lots of capital.
For example, you want to buy 10 Bitcoins at a price of $10,000.
To open such trade with a traditional exchange, you would be required to pay 10 x $10,000 for a position of $100,000 (ignoring any commission or other charges). If the Bitcoin price goes up by 5%, your 10 Bitcoins are now worth $10,500 each.
If you choose to sell, then you’d have made a $5,000 profit from your original $100,000 investment.
Here you’d only have to pay 1% of your $100,000 position, or $1,000 to open such trade. If the Bitcoin price rises by 5%, you would still make the same profit of $5,000, but at a considerably reduced cost.
That means that profits can be hugely multiplied.
Leverage Calculator. You only have to put down a fraction of the value of your trade to receive the same profit as in a conventional trade with any other exchange.
Leverage calculator allows you to calculate the total amount of buying power that you will get on the FXHOARD platform based on your capital