What is Avatrade Leverage?
Leverage trading or margin trading refers to the type of trading where funds are borrowed by an investor from a broker in order to add or open a position in an investment that is higher than the capital present in the account. In the context of Avatrade, it means that traders are allowed to use Avatrade leverage for forex, commodities, stocks, and bitcoin trading.
It is important to understand that any form of margin trading is risky, especially when the losses start mounting. In such cases, the brokers may go for the margin call to liquidate the holdings. To make sure that such a situation never arises, it is highly recommended for you to carefully handle the leverage and make sure that the position never moves against you.
Avatrade leverage for the clients
Regardless of whether you plan to margin trade now or in the future, you need to have a fair idea about the leverage offered by a broker. So, Avatrade maximum leverage is 400 to 1. But the ratio might be lower for the accounts held in the European Union. However, there are certain rules and guidelines to be kept in mind for Avatrade leverage. Read on to know more details about that.