I have been a little afraid of using CFDs until now (because of the idea of leverage) and in order to take advantage of short selling I was using an inverse ETF (with 2x leverage). Until this week the ticker had a problem with the data feed (resulting in enormous spreads), but they seem to be fixed. Anyhow… I realise an index CFD would better suite my needs so I want to ask if there is a possibility of reducing the leverage for an order. I would rather not use the full available leverage, but rather my own money. In another topic it was said that leverage can be reduced for the account, but I was wondering if there is such a thing as leverage selection on an order (something like eToro has).
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typically, reducing leverage means to not open as large of a position because all of your money will be involved in the trades.
so if you have £1000 and want a x2 leverage instead of x30, just don’t open the sum of positions beyond a value of £2000. you act as if there is no leverage, just don’t open a position that goes above the £1000 you have, leaving space for price fluctuations.
I was thinking about that… it is a solution indeed, but there is the disadvantage that you still pay the swap for that amount of money althought you really do not want it.
Lets take an example of x5 leverage vs x2 leverage. I have a 1000$… and I don’t want more than 2000$ right.
- x2 leverage => pay the interest for 1000$
- x5 leverage => pay the interest for 1600$
Am I not right?
+1 for this feature.
I would also like this feature to choose the leverage before placing the order.
Apart from that it would be helpful to have another option to choose between Aggregate and Hedged mode for individual instrument rather than set at an account level.