Leverage | Trading Terms

In the first video of our new series explaining trading terminology, David Jones looks at one of the first things newbies see when they open a real account – leverage.

What is it exactly? How does it work? Is there any way to see it in a real environment? All these questions and more are answered in this video.

Leverage is one of the basic things that one has to understand and keep in mind when trading. Many traders, even experienced ones, miscalculate its impact and reduce their chances of a profit. Knowing what it is will improve your risk-management, reduce stress levels and could lead to better decision-making.

Do you want David to explain other trading terms? Let us know in the comments and we’ll include them in our next videos.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.

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