Gearing (or Leverage)
CFDs allows clients to buy or sell a financial product
with substantially less money than the actual full
market value of that financial product. The maximum
gearing allowed by Capital CFDs can be calculated by
dividing the full nominal value of a 1 unit trade in a
contract by the Min IMR. A position in a contract with
high gearing or leverage stands to make or lose a large
amount from a small percentage movement in the
underlying instrument.
CFDs allows clients to buy or sell a financial product
with substantially less money than the actual full
market value of that financial product. The maximum
gearing allowed by Capital CFDs can be calculated by
dividing the full nominal value of a 1 unit trade in a
contract by the Min IMR. A position in a contract with
high gearing or leverage stands to make or lose a large
amount from a small percentage movement in the
underlying instrument.