CFD trading offers the ability to trade a variety of financial instruments with leverage, meaning you can open larger positions than your account balance would allow in traditional investing. This creates the possibility of larger profits, but also carries the risk of larger losses.
For example, if you trade with a leverage of 20:1, it means you can trade a notional value 20 times greater than the capital in your trading account.
The maximum leverage varies per asset class:
- 1/300 - currency pairs;
- 1/200 - commodities;
- 1/300 - indices;
- 1/20 - shares;
- 1/100 - crypto.
You can view and change your current leverage in your app settings (‘Account’ > ‘My accounts’ > ‘Trading options’).
Please see the following page on our website which explains more on leverage: https://capital.com/leverage-definition