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Dear , |
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One way traders can efficiently manage their capital and maximise their profits is optimum utilisation of leverage. |
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Optimum utilisation of leverage can allow a trader to trade more with higher volumes as compared to without it. |
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With SAMCO, clients get one the highest leverage in the industry. |
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SAMCO clients get: |
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- Up to 100x intraday leverage for trading futures on NSE in the NIFTY/BANKNIFTY
- Up to 33x intraday leverage on stocks and stock futures
- Up to 70x intraday leverage trading commodities
- Up to 100x intraday leverage trading currencies
- Up to 4x Delivery Margins to buy stocks in Delivery.
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An illustrative list is as under: |
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Contract | Margin Required | Unit | Leverage | NIFTY | 1% = 8900 | 1 lot = 75 units | 100x | BANKNIFTY | 1% = 6263 | 1 lot = 20 units | 100x | CRUDE OIL (MCX) | 1.6% = 6790 | 1 lot = 100 Barrels | 60x | GOLD (MCX) | 1.5% = 47914 | 1 lot = 1 kg | 66x | |
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Calculate your trading margin requirements |
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How should a trader select the optimum leverage level? |
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There is no generally correct answer to how much leverage should a trader use. That depends on one's trading strategy, style, etc. |
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The correct answer to this question mainly depends on the trader's trading strategy and the actual vision of upcoming market moves. That is, scalpers and breakout traders try to use high leverage, as they usually look for quick trades, but as to positional traders, they often trade with low leverage amount. |
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You should use the level of leverage most optimum for your trading strategy. |
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How to manage risk that comes along with trading? |
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So, while leverage can increase the potential profits, it also has the capability to increase potential losses as well, that is why you should choose carefully the amount of leverage on your trading account. But it should be noted that though trading this way require careful risk management, many traders always trade with leverage to increase their potential returns on investment. |
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Here are the basic points to manage the leverage risks properly: |
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- Using trailing stops,
- Keeping positions small
- Limiting the amount of capital for each position.
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Keep in mind that the leverage is totally flexible and customizable to each trader's needs and choices. |
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To measure the leverage for trading - just use the below - mentioned leverage formula. |
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Leverage = 1/Margin = 100/Margin Percentage |
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Example: If the margin is 0.02, then the margin percentage is 2%, and the leverage = 1/0.02 = 100/2 = 50. |
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To calculate the amount of margin used, just use our Margin Calculator. |
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Start Trading with the Optimum Leverage with SAMCO |
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Open a FREE ACCOUNT Today |
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Best Regards, |
Team SAMCO |
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