What are the pros and cons of leverage trading on AvaTrade?

Leverage trading can be beneficial to maximize your positions and gains, but it can also be a dangerous proposition if you do not possess the capital to cover the losses.

That said, here are pros and cons of leverage trading on AvaTrade:

Pros

• You have as much as 100:1 leverage so that you can transfer substantial amounts to different trade positions in your portfolio.
• Leverage can be considered as an interest-free loan without any of the costs involved.
• Investors can trade premium markets that are more expensive, so with enough experience, you can pad your profits.

Cons

• Your losses are amplified, possibly decimating your personal finances if you are not careful.
• You could face a margin call from the broker should you endure too many losses with leverage.

Leverage can be incredibly dangerous if you are conservative with your investing patterns and trading behaviors. Even AvaTrade repeatedly urges users who take on leverage to be extra cautious.