Can I Trade Indices Trading Without Indices Trading Leverage?
In indices , a indices trader can trade without indices trading leverage by choosing the 1:1 stock indices leverage option for their stock indexes trading account. stock indices leverage of 1:1 means that the indices trader has not borrowed any capital from their stock indexes trading broker and the indices trader will only use the money they have deposited in their stock indexes trading account for trading.
This option of not stock indices leverage is not very popular because stock indices leverage is what makes the stock indexes trading market popular among online indices traders - because with indices trading leverage indices trading option: for example 1:100 stock indices leverage option means a indices trader can borrow 100 dollars from their indices broker for every 1 dollar in their stock indexes trading account, therefore a indices trader with a deposit of $1,000 can borrow up to $100,000 from their indices broker - ($1,000*1:100 which is equal to $100,000). A indices trader can then use this borrowed capital to open stock indexes trades with.
Also, if there was no indices trading leverage then the stock indexes trading market would be inaccessible to many indices traders as they would require a lot of capital before they start online indices trading, but with indices trading leverage stock indexes traders can deposit a small amount of capital and use indices trading leverage to borrow the rest of the capital required to open a indices trade from their stock indexes trading broker.
The deposit a indices trader puts in their stock indexes trading account is known as the margin. This margin in the stock indexes trading account is the money that indices traders used when borrowing from their indices broker using stock indexes trading leverage. If a indices trader has a margin of $1,000 in their indices trading account they will then use this $1,000 to obtain indices trading leverage from their stock indexes trading broker and then open stock indexes trades with the capital borrowed from their stock indexes trading broker.
To Learn and Know More about Indices Trading Leverage and Margin - Read the Topics Below:
Indices Trading Leverage and Margin Explained