Leverage
Leverage is a financial tool that allows traders to operate with amounts exceeding their own capital by using borrowed funds.
TonTrader offers leveraged trading ranging from x5 to x100, providing traders with the opportunity to significantly expand their trading potential.
Example:
You have 100 of your own funds.
You use x10 leverage.
Your trading capital now amounts to 1000 (100 own funds + 900 borrowed).
It is important to understand that the choice of leverage directly affects your trading strategy and risk exposure. The higher the leverage, the greater the potential profit — but also the higher the risk of losses .
How to use Leverage effectively:
Assess the Risk – Before using leverage, evaluate your financial capabilities and potential risks.
Choose the right Leverage Size – Start with lower leverage to gradually build confidence.
Manage Losses – Protect yourself from significant losses by setting Stop Loss levels.
Open a Trade – Regularly monitor your open positions and stay prepared for market changes.
As you gain experience and confidence, you can gradually increase leverage. High leverage can be profitable, but it requires a cautious approach and a full understanding of the risks. Success depends on your experience, strategy, and ability to adapt to market changes.
Adjusting Leverage
After initiating a trade (opening a position), a trader has the option to increase the effective leverage provided it was not already set to the maximum allowed limit. Scaling up leverage can be advantageous if the trader observes a significant confirmation of the price trajectory (or trend).
While increasing the leverage serves to amplify potential returns (profit potential), it comes at the expense of a proportionally increased exposure to risk.
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