Leverage allows you to multiply your buying or selling power in the market
How Does Leverage Work?
Leverage is a key feature of the AAG Markets trading platform, and is a very popular tool for traders. You can use it to take advantage of small price movement, execute advanced risk management strategies, and to make your capital grow faster than ever before.
Leverage works by using a deposit, also known as margin, to provide you with increased buying and selling power. Basically, you’re putting down a small fraction of the full value of your trade – and AAG Markets is providing you with the rest. Our products allow traders to increase exposure to global markets, without requiring a lot of capital upfront.
XAU/USD trade example
For example, you want to buy 100 troy ounces of Gold at a price of $2,000 USD.
To enter into this trade with a traditional exchange, you would be required to deposit $200,000 (100 troy ounces x $2,000, not including any commission or other charges). If Gold price goes up by 5%, your 100 troy ounces of Gold are now worth $2,100 each.
If you choose to sell, then you’d have made a $10,000 profit from your original $200,000 investment. Your ROI would be 5%.
Standard 1:200 leverage with AAG Markets
Here you’d only have to pay 0.5% of your $200,000 position, or $1,000 to open such a trade on our platform. If Gold prices rise by 5%, you would still make the same profit of $10,000, but with a much lower cost. With leverage, your ROI would be 900%.
Leverage allows your profits to be massively multiplied.
Normal trade with
Leveraged trade with
Benefits of Using Leverage
Open a Free Account Now
It’s free to open an account, and there is no obligation to fund or trade.