Leverage enables you to get a much larger exposure to the market you’re Investing than the amount you deposited to open the trade.
Leverage is a key feature of a Prime investment platform, and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio for greater position size, and to make your capital grow faster.
Leverage works by using a deposit, known as margin, to provide you with increased exposure. Essentially, you’re putting down a fraction of the full value of your trade – and Prime is providing you the rest. Our products allow investors to gain exposure to major cryptocurrencies, such as Bitcoin and Ethereum and others, without tying up lots of capital.
Prime is an advanced, award-winning margin Stock investment platform offering a wide variety of Bitcoin-based CFDs with added leverage and both long and short positions on cryptocurrencies.
Our products allow investors to access a vast array of Investing instruments and build a diverse Investing portfolio, without tying up lots of capital.
For example, you want to buy 10 Bitcoins at a price of $10,000.
To open such trade with a traditional exchange, you would be required to pay 10 x $10,000 for a position of $100,000 (ignoring any commission or other charges). If the Bitcoin price goes up by 5%, your 10 Bitcoins are now worth $10,500 each.
If you choose to sell, then you’d have made a $5,000 profit from your original $100,000 investment.
Here you’d only have to pay 1% of your $100,000 position, or $1,000 to open such trade. If the Bitcoin price rises by 5%, you would still make the same profit of $5,000, but at a considerably reduced cost.
That means that profits can be hugely multiplied.
