63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Trading Financial Leverage

Financial Leverage

A double-edged sword in every trader’s arsenal

One of the main mechanisms of online trading is financial leverage. Leverage is the ratio of the amount of capital that a trader invests in an account against funds provided by the broker. To put it simply, it is basically capital borrowed from a broker, which is not being added to your overall account balance but rather allows you to trade with larger volumes than you could have with your own funds.

How the leverage works

It is simple mathematics. If you invest $ 1,000 and the leverage is 1:50, then the amount you have available is equivalent to $ 50,000. If everything goes smoothly, the leverage is an ideal means of accelerating your own profits.

However, keep in mind that in addition to gains, the leverage also accelerates potential losses. Therefore, we recommend beginner traders to handle the leverage carefully, as its reckless use can very quickly lead to an empty trading account.

What financial leverage does Purple Trading offer?

Purple Trading offers financial leverage up to 1:30 for all retail clients and leverage up to 1: 500 for clients who meet the requirements for classification as a professional client (read what these requirements are) and 1:100 for experienced clients.

Forex
Indices
Commodities
Stocks
Futures
Crypto
Instruments Max leverage for retail clients
EUR/USD 1:30
GBP/USD 1:30
USD/CHF 1:30
USD/JPY 1:30
EUR/CHF 1:30
EUR/GBP 1:30
EUR/JPY 1:30
USD/CAD 1:30
GBP/CAD 1:30
EUR/CAD 1:30
GBP/CHF 1:30
GBP/JPY 1:30
CAD/CHF 1:30
CAD/JPY 1:30
CHF/JPY 1:30
EUR/AUD 1:20
AUD/CAD 1:20
AUD/CHF 1:20
AUD/JPY 1:20
NZD/JPY 1:20
GBP/AUD 1:20
GBP/NZD 1:20
NZD/USD 1:20
AUD/USD 1:20
NZD/CAD 1:20
NZD/CHF 1:20
EUR/NZD 1:20
AUD/NZD 1:20
EUR/PLN 1:20
USD/SEK 1:20
EUR/SEK 1:20
USD/NOK 1:20
EUR/NOK 1:20
EUR/HUF 1:20
USD/PLN 1:20
USD/CZK 1:20
EUR/CZK 1:20
USD/HUF 1:20
USD/SGD 1:20
EUR/MXN 1:20
USD/MXN 1:20
ZAR/JPY 1:20
SGD/JPY 1:20
EUR/SGD 1:20
EUR/ZAR 1:20
USD/ZAR 1:20
AUD/SGD 1:20
AUD/ZAR 1:20
CHF/HUF 1:20
CHF/ZAR 1:20
GBP/SGD 1:20
GBP/ZAR 1:20
NOK/SEK 1:20
NZD/SEK 1:20
NZD/SGD 1:20
USD/ILS 1:20
Instruments Max leverage for retail clients
DAX 1:20
DOW 1:20
S&P 1:20
CAC 1:20
FTSE 1:20
NSDQ 1:20
STOXX 1:20
ASX 1:20
NIKKEI 1:20
Instruments Max leverage for retail clients
GOLD 1:20
SILVER 1:10
PLATINUM 1:10
PALLADIUM 1:10
Crude Oil 1:10
Brent 1:10
Instruments Max leverage for retail clients
CFD stocks Table
Instruments Max leverage for retail clients
CFD futures Table
Instruments Max leverage for retail clients
BTC/USD 1:1
LTC/USD 1:1
ETH/USD 1:1
BCH/USD 1:1

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Lost in terms?
Take a look at the glossary below:

CFD - contract for difference
Show answer
It is a trading instrument; its value is derived from its underlying instrument, which can be for example a stock index or a future contract. Settlement of this instrument type is always performed financially, therefore the client speculates on future value difference of the underlying instrument while he/she does not become the owner of it.

 
Execution time
Show answer
Time between order submitting on the trader’s side and its filling in the market. It is expressed in milliseconds.
Financial leverage
Show answer
A mechanism which enables traders to trade larger amounts even with smaller volume of free capital which would otherwise be insufficient for the trade, e.g., when trading 1 lot of currency pair EURUSD with leverage of 1:100, the client has to have at least 1,000 EUR of free capital on his/her trading account. Should the leverage not be used in this scenario, the client would need to have 100,000 USD on his/her trading account to cover the entire traded volume.

 
Liquidity
Show answer
Broker’s ability to fill client’s order in the market at the desired value and in the desired volume.
Lot
Show answer
The basic unit of traded volume. For currency pairs, it is 100,000 units of the base currency. Lot size varies between individual CFD-type instruments as it is based on the number of contracts set for each one.

 
Pip
Show answer
The price expression of currency pairs based on the one-before-last decimal of the quoted price. If the price of EURUSD currency pair changes from 1.17455 to 1.17465 then the price changes by one pip. The same way, if the USDJPY price changes from 110.124 to 110.114 a change by one pip occurs.
Slippage
Show answer
A slippage in order filling. It expresses the difference between the asked price at trader’s side and the price at which the order is executed in the market (in market execution, it is the best available price in the market at that time). Slippage can have positive as well as negative value.

 
Swap
Show answer
A fee charged for holding a trading position overnight. It is expressed in points or percents and it is directly proportional to the volume of the trading position held. Please note the Swap for Forex pairs and precious metals is being charged 3x on Wednesday, which includes also the weekend swaps. (Swap is charged at Wednesday - Thursday midnight) For other symbols is being charged 3x on Friday. (Swap is charged at Friday - Saturday midnight)
63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. L.F. Investment Limited. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. L.F. Investment Limited has taken reasonable measures to ensure the accuracy of the information on the website, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website.

At this time L.F. Investment Limited cannot and will not accept clients from outside European Economic Area and from Belgium, Switzerland and USA. You need to be 18 years old or legal age as determined by the laws of the country where you live in order to become our client.

Our payment providers are TrustPay, a.s. authorised and regulated by the National Bank of Slovakia and Emerchantpay Ltd. which is authorised and regulated by the Financial Services Authority (FCA) of the United Kingdom. Our Electronic money institution is Cardpay authorized by Central Bank of Cyprus.

Purple Trading is a Cypriot national trademark (no. 85981), National UK trade mark (no. UK00003696619) and European Union trade mark (no. 018332329) owned and operated by L.F. Investment Limited, 11, Louki Akrita, CY-4044 Limassol, Cyprus, a licensed Cyprus Investment Firm regulated by the CySEC lic. no. 271/15. The company is legally obligated to follow all laws of Cyprus and rules and conditions of its CySEC license. The subsidiary of L.F. Investment Ltd, LFA International Ltd., Aiolou & Panagioti Diomidous 9, Katholiki, 3020, Limassol, Cyprus, registration number: HE422638 is responsible for card processing.

CFDs with underlying asset a virtual currency pair are complex, extremely risky, and usually highly speculative and entail a high risk of losing all the invested capital and therefore are not appropriate for all investors. The values of virtual currencies values are subject to extreme price volatility and therefore may result in significant loss over a short period of time. Clients should not engage in trading in CFDs with underlying asset a virtual currency pair unless they have the necessary knowledge in this specific product; or if they can bear the loss of the entire invested amount. For more details please see the Risk Warnings and Disclosures.


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