What is Leverage?

Leverage is the main feature of Derivatives trading and a powerful tool available to traders. You can use leverage to profit from relatively small price movements, to "leverage" your portfolio for greater exposure, or to put your capital to good use.

How does leverage work?

Leverage uses a deposit (also known as margin) to provide you with higher exposure to the underlying asset.
Essentially, you pay a fraction of the full transaction value, and your provider lends you the rest.

Before you start trading, you need to prepare an initial margin, which is the margin required to open a position. When the number of positions remains unchanged, the greater the leverage used, the less the used margin occupied by each order, and the relatively increased available margin can counteract market risks.

If you trade at a loss, you may receive a margin call, where more funds need to be injected to maintain the open order. This extra money is called the maintenance margin.

How can I minimize risk when trading with leverage?

Although leveraged trading can double profits, there is also the risk of doubling losses.However, AUS GLOBAL provides you with convenient risk management tools to help you reduce potential losses. You can set stop loss and take profit for your order, and we also provide a negative balance protection mechanism.

止损:止损指令可以在市场不利于您的时候以预先设定的价格平仓。在进行止损设置时,您可以根据市价设置特定的变动幅度,也可以明确金额,此数据会以相当于您的初始投资金额多少个百分比的形式在交易窗口中显示。

止盈:设置止盈指令,在价格到达您所选择的获利金额时自动平仓。

负余额保护:在极少数情况下,由于市场状况导致您的账户净值变为负数,AUS GLOBAL 将填补您的损失并将账户净值重置为零。

止損:止損指令可以在市場不利於您的時候以預先設定的價格平倉。在進行止損設置時,您可以根據市價設置特定的變動幅度,也可以明確金額,此數據會以相當於您的初始投資金額多少個百分比的形式在交易窗口中顯示。

止盈:設置止盈指令,在價格到達您所選擇的獲利金額時自動平倉。

負餘額保護:在極少數情況下,由於市場狀況導致您的賬戶淨值變為負數,AUS GLOBAL 將填補您的損失並將賬戶淨值重置為零。

trading leverage trade in Aus Global platform

Benefits of Using Leverage

leverage offers a chance of using less capital to gain more

Magnify profits

You only pay a fraction of the trade value to earn the same profit as a regular trade. Since profits are calculated on the full value of your position, margin can result in multiplied returns on successful trades, but also multiplied losses on unsuccessful trades.

advantages of leverage trade is enhancing capital efficiency

Leverage Ratio Opportunities

Using leverage frees up capital for other investments. This ability to increase the funds available for investment is known as the leverage ratio.

call or put in leverage trading

Shorting

By using leveraged products to make high-risk investments in market movements, you can profit from a market with falling prices as well as a market with rising prices, an ability known as shorting.

Aus Global offers 24 hours trading

24 hours trading

While trading hours vary from market to market, certain markets (including major indices, forex) can be traded 24/7.

leverage offers a chance of using less capital to gain more

Magnify profits

You only pay a fraction of the trade value to earn the same profit as a regular trade. Since profits are calculated on the full value of your position, margin can result in multiplied returns on successful trades, but also multiplied losses on unsuccessful trades.

advantages of leverage trade is enhancing capital efficiency

Leverage Ratio Opportunities

Using leverage frees up capital for other investments. This ability to increase the funds available for investment is known as the leverage ratio.

call or put in leverage trading

Shorting

By using leveraged products to make high-risk investments in market movements, you can profit from a market with falling prices as well as a market with rising prices, an ability known as shorting.

Aus Global offers 24 hours trading

24 hours trading

While trading hours vary from market to market, certain markets (including major indices, forex) can be traded 24/7.

Aus Global offers up to 500 times leverage

* All of the above are Derivatives trading products, kindly read "Risk Disclosure of High-Risk Trading Products"

Due to the drastic changes in the value and price of the underlying financial instruments, trading stocks, securities, futures, Derivatives and other financial products involves high risks, and large losses exceeding your initial investment may occur in a short period of time. Past investment performance is not indicative of its future performance, and before making any transactions with us, please ensure that you fully understand the risks of trading with the corresponding financial instruments. If you are unaware of the risks described here, you should seek independent professional advice.

1 : 500

You can flexibly choose up to 500 times leverage at AUS GLOBAL! If you understand how leveraged trading works, it can be a very powerful trading tool. With leverage, traders can control larger positions using only a small amount of actual trading capital. However, the potential adverse consequences of using such products must also be considered. Leveraged trading is risky because losses can exceed your initial outlay, but there are many risk management tools available to reduce your potential losses. Using a stop loss is a common way to reduce leverage risk, but there are also many other tools available, including price alerts and limit orders.

All of the above are Derivatives trading products, kindly read "Risk Disclosure of High-Risk Trading Products"

Due to the drastic changes in the value and price of the underlying financial instruments, trading stocks, securities, futures, Derivatives and other financial products involves high risks, and large losses exceeding your initial investment may occur in a short period of time. Past investment performance is not indicative of its future performance, and before making any transactions with us, please ensure that you fully understand the risks of trading with the corresponding financial instruments. If you are unaware of the risks described here, you should seek independent professional advice.

Product Leverage

Leverage and Risk Management

Using a stop loss is a common way to reduce leverage risk, but there are many other tools available, including price alerts and limit orders.

trader can pay permium to change to 100% stop loss

Stop Loss

Attaching a stop loss to a position will limit your losses should the price move against you. However, the market changes rapidly, and some circumstances may prevent your stop loss from being triggered at the price you set.

Aus Global offer take profit to guarantee to gain of trading

Take Profit

Set up a take profit order to automatically close the position when the price reaches the profit amount you choose.

negative balance protection for applying leverage

Negative Balance Protection

In the rare event that your account equity becomes negative due to market conditions, Aus Global will cover your losses and reset the account equity to zero.

Leverage Ratio and Margin Trading

The leverage ratio

is a measure of the ratio of the total exposure of the transaction to the margin requirement. Leverage ratios will vary depending on the markets you trade, who you trade with and the size of your positions.

Leverage allows traders to control larger positions using less actual trading capital. For example, with a leverage ratio of 1:100, $1 in a trading account can control a position worth $100. Therefore, leveraged trading is a "double-edged sword", and both potential profits and potential losses are magnified according to the degree of leverage used.

Assumption: without using leverage, such as buying or selling a position of 100,000 USD/CAD, the trader needs to provide an account fund of 100,000 USD, which is the full value of this position. However, with a leverage ratio of 1:100, a trader would only need $1,000 in capital to open and maintain a $100,000 position in USD/CAD.

Capture the Unlimited Opportunities in the Global Market

One-click trading to connect to global markets.

Start a global trading journey and trade over 10000+ Derivatives products, US & EU Stocks, futures, forex, precious metals, commodities and stock indices by opening just one account at AUS GLOBAL

One Click to Invest Globally 一键交易连接全球市场

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One Click to Invest Globally 一键交易连接全球市场

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Start a global trading journey and trade over 10000+ Derivatives products, US & EU Stocks, futures, forex, precious metals, commodities and stock indices by opening just one account at AUS GLOBAL

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trading products

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