If you have understood what leverage meaning is, the next step is to take a look at different products that have been leveraged. In leveraged CFDs trading, derivative products are majorly used. This means that the trader doesn’t have to own the asset. Instead, traders will trade instruments that take their value from the prices of underlying assets. Here are some of the leveraged products to know of
The first one is CFDs. This is an agreement with the provider to trade on the difference in the price of an asset or a product. This is normally done between the time the trader opens the position and when the position is closed.
This is also an example of a product that has been leveraged but is only available in the UK. This is simply a bet on the changing direction of the market. This simply means that the more the market moves, the more profitable trade is likely to earn when the market moves in the direction that you choose. You can also make losses when it moves in the opposite direction.