more volatile or less liquid an underlying market or the larger your trade the lower the leverage on offer, as we seek to protect you, and ourselves, from the effects of travelex foreign currency exchange large and rapid movements in price. If you had done this, each point of movement in your favour would generate 20 times as much profit compared to the unleveraged scenario for the same initial outlay. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. IG, markets, ltd, spread betting provided by,.
Index Ltd (a company registered in England and Wales under number 01190902). All trading involves risk. Youll find the degree of leverage you can get will vary according to the conditions of the underlying market and the size of your trade. Professional clients can lose more than they deposit. In the absolute worst case scenario, with the underlying share price falling to zero and neither you. Heres how different degrees of leverage affect your exposure (and thus profit potential and maximum loss) for an initial investment of 1000.