Broaden your trading opportunities
What is margin trading?
Part of Forex trading is that it allows you to trade on margin, or borrowed capital that you can think of as a loan. When trading on margin, you deposit a small amount and control a larger amount in the actual market. This option truly broaden your opportunities.
Margin trading can be considered a free, short-term credit allowance offered to you by EZINVEST. It can be used for the purchase of an amount that is higher than the current value of your account. Generally speaking, margin trading on EZINVEST is very simple and helpful, especially for beginning traders. Here’s an example of how it works:
Suppose you have an EZINVEST Forex account with $1000. At a margin of 50 to 1, you will be able to trade ticket sizes of $50,000 USD/EUR. The necessary credit required to make the purchase will be temporarily lent to you by EZINVEST.
Benefits of Margin Trading
One of the major advantages of margin trading on EZINVEST is that it allows you to amplify your returns. In Forex, a bigger investment means better returns!
For instance, if you are trading your $1000 without margin and the trade nets you 100 pips, every pip is worth 10 cents. The overall gain will be 1 percent, or $10. On the other hand, for the same trade with a 50 to 1 margin, you are initiating with a capital of $50,000. For the same 100 pips, your gain would be 50 percent of $500.
Risks of Margin Trading
Let’s face it , trading a margin also has its risks, which can be detrimental in case the trade is subjected to a loss instead of a gain in pips. However and the variety of resources we offer, you can considerably reduce your risks by backing up your decisions with the best trading tools and knowledge.
Margin Trading on EZINVEST
At EZINVEST, we guide traders in safe and effective margin trading. We also keep in mind that the Forex market is, after all, unpredictable. That’s why we’re committed.