Can I Day Trade Without Leverage?
In indices , a trader can trade without leverage by choosing the 1:1 leverage option for their indices account. stock indices leverage of 1:1 means that the trader has not borrowed any capital from their indices broker and the indices trader will only use the money they have deposited in their indices margin account for trading.
This option of not stock indices leverage is not very popular because leverage is what makes the indices trading popular among online indices traders - because with leverage indices trading option: for example 1:100 indices leverage option means a indices trader can borrow 100 dollars from their indices broker for every 1 dollar in their indices account, therefore a 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 trader can then use this borrowed capital to open stock indices trades with.
Also, if there was no indices trading leverage then the indices market would be inaccessible to many indices traders as they would require a lot of capital before they start indices trading online, but with indices leverage stock indices 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 indices trading broker.
The deposit a trader puts in their stock indices trading account is known as the margin. This margin in the stock indices trading account is the money that indices traders used when borrowing from their indices broker using leverage. If a trader has a margin of $1,000 in their indices trading account they will then use this $1,000 to obtain leverage from their indices broker and then open stock indices trades with the capital borrowed from their stock indices trading broker.
To Learn and Know More about Stock Indices Leverage and Margin - How to Read the Topics Below:
Indices Trading Leverage and Indices Trading Margin Explained
Regulated Indices Broker Information: Read About Regulated Indices Broker Review
Takes 5 Minutes to Open an Account, Open an Account Early: Open Indices Account
