What is a 1:30 leverage trade on Avatrade?

Asked 4 years ago

Hi everyone, I've done leverage trading before because I was told that it was classified as high-risk trading. But I'm in need of a new challenge. What does the ratio of 1:30? Is there any way to adjust or set it? What precautions would you suggest I take? TIA

Andrew Moran

Tuesday, July 13, 2021

First, 1:30 leverage means that the broker is giving the investor $30 for every $1 that the trader has in his or her account.

Second, you can adjust it as high as 1:400 on AvaTrade for buying stocks. But the leverage ratios vary between different investments, like cryptocurrency.

Third, you need to be extra cautious since leverage this high can destroy your finances. You should only trade what you can afford to lose. In today's market, where so many novice investors have jumped in on the latest craze, there have been too many people who have lost everything because of leverage.





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