How does leverage work when trading CFDs on digital currencies?

3 answers

• Dec 17, 2021 · 3 years ago
  Leverage in CFD trading allows you to control a larger position with a smaller amount of capital. When trading CFDs on digital currencies, leverage amplifies both potential profits and losses. For example, with 10x leverage, a 1% price movement can result in a 10% gain or loss. It's important to carefully manage your risk when using leverage to avoid significant losses.
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• Dec 17, 2021 · 3 years ago
  Leverage is like a double-edged sword in CFD trading on digital currencies. It can magnify your gains, but it can also magnify your losses. It's crucial to understand the risks involved and have a solid risk management strategy in place. Always remember that leverage is a powerful tool that should be used with caution.
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• Dec 17, 2021 · 3 years ago
  When trading CFDs on digital currencies, leverage allows you to borrow funds from the exchange to open larger positions. This can increase your potential profits, but it also increases the risk of losses. It's important to choose the right leverage level based on your risk tolerance and trading strategy. BYDFi, a leading digital currency exchange, offers leverage options for CFD trading on various digital currencies.
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