Leverage Trading

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 Traditional Exchange

Normal trade with
traditional exchange

Leveraged trade with
AAG Markets

Leveraged Trade With AAG Markets

Benefits of Using Leverage

Multiplied profits. You only have to put down a tiny fraction of the value of your trade to receive the same profit as in a conventional trade with any other exchange.

Diversified opportunities. Using leverage can leave a lot of your capital free to commit to other investments. This strategy to increase the amount available for investment is called gearing.

Gaining from the market fall. Using leverage to trade on market movements enables you to make money from falling and rising markets, this is called going short. This means you can make money during bull as well as bear markets.

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