Trading & Investing

What is leverage?

Leverage is a strategy that gives the investor a chance to multiply their buying power to invest in certain financial products by using borrowed funds that the trader did not have available in their own wallet.

Leverage does provide the chance to increase the potential return of your investment, but it can also be very risky as it can have the same effect on any losses you may take.

How does leverage work?

Any amount of leverage will increase your impact on a trade. If you increase the level of leverage of any trade, it allows you to multiply your exposure to that specific instrument in proportion to the leverage ratio being used (for example, x7 as opposed to x2).

The multiplier will show you how much buying power you have on your first investment.

If you are considering increased leverage, you must take into consideration:

• The maximum amount of leverage on the type of asset. • Your own risk tolerance, as leverage works both ways and could result in big losses. • Leverage does not change the amount of your own funds you invest, but the trade’s exposure and therefore the number of units in the trade. • All positions with leverage are traded as CFDs.

What is staking?

Staking is a process that enables coin holders to earn rewards.

It is based on the Proof-of-Stake (PoS) mechanism, which is utilized by distributed blockchain networks. In this mechanism, miners or validators of block transactions are determined by the number of coins they possess. The greater the coin holdings, the more mining power one has. Staking rewards are distributed among users who own the crypto assets, such as Assetise and our clients, who delegate their voting rights to staking pools.

By delegating validations to a staking pool, there is a higher probability of being selected to generate the next block, resulting in increased rewards.

Can I buy stocks when the market is closed?

If the market you want to invest in is closed, you have the option to place an after-hours order, which will be executed at the first available rate when the market reopens.

Assetise allows after-hours orders for most popular stocks. Nevertheless, for less common stocks, you may only be able to enter orders during regular market hours.

Why is there a loss as soon as I open a trade?

Each trade involves a BUY price and a SELL price, and the difference between these prices is referred to as the spread, which includes the commission charged on each trade.

When initiating a trade, the displayed current rate represents the closing rate if you decide to close the position.

For instance, when you open a BUY trade, it begins at the BUY price and concludes at the SELL price. Conversely, if you open a SELL trade, it commences at the SELL price and ends at the BUY price.

Due to the disparity between these two rates, a new trade will always indicate an immediate loss.

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