Doo Prime officially increased the leverage option from 1:500 to 1:1000 for all account types on 19th November 2022. The adjustment offers more flexible options, providing global clients the opportunity to leverage higher potential profits with less capital and further expand their investment opportunities.
Please be reminded that:
1.Before the release of major data or events, due to unpredictable market fluctuations, financial derivatives may generate large losses in a short period of time that exceed the investor’s initial investment. Therefore, in order to protect the vital interests of investors, clients may adjust their leverage at that time. Clients are advised to pay attention to the relevant notice.
2.Our company reserves the right to adjust the leverage if we find clients displaying any trading behavior that abuses leverage.
What Is Leverage?
Leverage is a powerful tool that allows traders to maximize their capital by expanding their exposure to the financial markets, at the same time investing less capital. By choosing the right leverage, you can start trading with a loan from a dealer by simply depositing much less margin than your exposure.
So, how does leverage trading work?
Before you start trading, you need to prepare an Initial Margin, which is the minimum margin required to open a position. When the number of positions remains the same, the greater the leverage used, the less the Used Margin per trade, and the more the Free Margin available. This helps you to counter greater risks.
Therefore, with the right use of leverage, you can not only start trading with less money, but also use the freed-up funds for more investments, which will increase the efficiency of capital utilization. On top of that, you can also use leverage to short the market when the market goes down.
In other words, leverage is able to amplify your available capital reserves. The more leverage you have, the more flexible capital you have!