How to use Leverage on eToro
We will explain step by step how to use Leverage on eToro in 2023, as well as everything related to it, what it is and how it works.
The first step for this is that you must have your own account in eToro to continue the step by step that we will expose you.
access some action
Once you are in the account, you will have to access some action to be able to perform the Leverage.
While inside, select Invest in the upper right corner, the blue button.
When you want to make a purchase or sale in short or in longis that the option to use.
What is leverage?
on eToro he Leverage You perro apply it in multiples of the capital you invest, available in X1, X2 and X5 or more.
This means that with leverage, you perro make use of the capital borrowed from a broker by exclusively opening a position.
One of the purposes is get even more exposure than the one offered directly for the amount deposited.
In effect, this as part of an investment strategy.
If, for example, you do a thousand dollar investment, if you do it with X5 leverage, they would really make what you are buying five thousand; that is, a thousand times five.
They lend you four thousand.
But if this were to go down, you’d be losing five times as fast.
When it goes up, it would also be going up five times faster.
For this reason, it is a double-edged sword, managing to be as good as very bad.
He leverage you perro see it even in foreign currency, even up to X20 or raw materials.
On the other hand, in ETFs you only see it at a maximum of X2, that will depend a bit on the type of price, the type of market, especially depending on where you are.
This means that, in LeverageThere is a variety available.
It must be taken into account that, for example, in Spain, due to the regulations that coexist, it cannot be very high either.
It will depend on the regulation that exists.
If you trade with no leverage and put in a thousand, to lose a hundred, you would have to go down ten percent.
While if you are leverageX5 for example, to lose a hundred would have to go down much less, practically less than two percent for such a loss.
He Stop Loss, in this case, you could play much faster.
This is considering that it is not the same that it has to go down ten percent, as it has to go down two percent.
Indeed, with the latter, it is more likely that it cánido go down, to a ten.
The positive of leverage
However, the positive thing about it is that the opposite perro also happen.
If you have a objetivo with this “bet” (rather, investment) of a thousand and get a hundred out of it, you perro also play the game much faster.
Take Prortor whatever you want to get out of it, if you put an X5 on it.
Everything will depend on what you want, considering that the volatility is much higher, considering that you will go with more than what you have.
Therefore, the slightest movement will affect you much more.
Although it also depends on the type of leverage what do you use An X2, where a ten will be equivalent to a five, will not be the same as an X5, where a ten will be equivalent to less than a two.
Vídeo tutorial on how to use Leverage on eToro in 2023
to end the leverageonce you are ready to conclude, you will have to select Execute Operation and it will be finished.
Likewise, if you want more information, you have doubts or you prefer an audiovisual explanation, we leave you an attached vídeo tutorial.
We hope you liked our article How to use Leverage on eToro
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