Benefits & Risks of Financial Leverage
The undisputable benefit of financial leverage is the possibility to gain significantly higher profits by having a bigger stake in the market. This clearly demonstrates the potential of financial leverage. However, we should not forget that leverage is a double-edged sword and where there is a higher profit there can also be a higher loss even in cases of small market movements.
The higher the leverage the greater the effect fluctuation has on your profit/loss. This means that you can multiply your profits even from small market movements. But at the same time, you put yourself at risk of losing all deposited funds should the market move in an unexpected direction.
In order to protect you from the risks stemming from the use of financial leverage, we have implemented safeguard measures such as Margin Call, Stopout, and mainly a Negative Balance Protection feature. Due to the Negative Balance Protection, you will never lose more than your deposited balance. Should this happen, the exceeding amount will be wiped off by Axiory.