Capital.com Leverage: Leverage levels and mobile settings
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Capital.com Leverage: Leverage levels and mobile settings. When trading on Capital.com, if you do not use leverage, you will not be charged overnight. Therefore, you will be able to use long-term stock holding investment strategies when trading on Capital.com. However, leverage selection is specific to each asset class and is set individually in the account settings. This article will guide you through setting up leverage for your Capital.com account on mobile.
What is leverage in trading?
Before learning about the concept of leverage in financial and securities transactions, let’s learn the following example:
You deposit $1000 into your account to buy BTC.
- When BTC goes up 1%, you have a profit of $10.
Conversely, if BTC drops 1%, you lose $10.
But for 1000$, you use 10:1 leverage. Then you have $10,000 to buy BTC.
- When BTC increases 1%, you profit 100$
In contrast, with 10:1 leverage, if BTC only drops 1%, it will also lose $100.
- Thus, leverage means that you borrow money from the broker to trade orders larger than the amount you have in your account.
The use of leverage provides investors with higher returns but also carries greater risks.
When you lose up to a certain amount (usually equal to the amount you used to margin the trade you opened), exchange will force that losing trade to close.
When you trade stocks on Capital.com, you don’t get charged overnight if you use leverage (aka 1:1 leverage). Your rollover is charged only on your leveraged trades.
Leverage levels for each asset class on Capital.com
Capital.com offers different levels of leverage for each asset class. As follows:
- Money Market on Capital offers 4 different leverage levels: 1:1, 30:1, 50:1, and 100:1.
- The index market on Capital offers 4 different leverage levels: 1:1, 20:1, 50:1, and 100:1.
- The Commodity Market on Capital offers 4 different leverage levels: 1:1, 10:1, 50:1, and 100:1.
- The equity market on Capital offers 5 different leverage levels: 1:1, 2:1, 5:1, 10:1 và 20:1.
- The crypto market on Capital offers 7 different leverage levels: 1:1, 2:1, 5:1, 10:1, 20:1, 50:1 và 100:1.
How to install leverage for Capital.com account on mobile
On the Capital.com platform, you will be able to choose and set the leverage level for each asset class. For example, you can use 10:1 leverage with crypto, but you can use 100:1 leverage with forex on the same account.
This is quite a flexible feature for customers when using this platform for trading. Because each asset class will have different price volatility characteristics, the need to use leverage will also be different.
To install leverage for your Capital.com account on your phone, do the following:
Step 1: Log in to your Capital.com account. If you do not have an account, you can open a Capital.com account at the link below:
* See more: The complete guide Capital.com from a to z
Step 2: In the [Account] tab
Tap [My Accounts]
Step 3: Drag the options bar on the screen and click [Trade Options]
Step 4: Click [Leverage]
Step 5: Choose the type of asset you want to leverage
Step 6: Click on the leverage of your choice and press [Done]
Thus, you have finished setting the leverage level for the asset class you just selected in step 5. If you continue to set the leverage level for other assets, repeat steps 5 and 6.
After setting the leverage, every trade you open in your Capital.com account will be using the leverage of the respective asset you set up in step 6.
Above is a guide to setting up leverage for a Capital.com account on a mobile phone. We note that the use of leverage brings better returns but always comes with higher risks. Therefore, you should limit the use of leverage, especially high leverage levels.
If you have no experience and want to practice trading, you should use a Demo account instead of leverage to increase your investment capital.
Read more: capital.com