In the event of a 10% fall in the price of the asset, you will lose 2,000 while you will have invested only 1,000. This mechanism therefore presents significant risks in the event of a market downturn and requires good knowledge of the workings of the stock market to be used. Here are tips to limit the risks. You can take the Plus500 Review in the page and work accordingly.
Don’t Look For Significant Leverage from the Start
When you start trading, you have to know how to be patient and not try to get amazing results from the first months. A race for short-term profitability can even hold some unpleasant surprises. It is therefore necessary to start favoring small amounts with moderate leverage. This will allow you to learn to master this tool, and then gradually increase the amounts if you wish and when you feel more comfortable. To protect yourself against the risks linked to leverage effects, it may also be advisable to define a monthly budget jointly with your financial advisor.
Avoid Overly Complex Platforms and Products and Have Them Accompany You
For a novice, the springs of leverage can be difficult to grasp. Going through some …