If you used Clearing in 2024, how did you find it?

What can a 1:100 leverage on trading.....

A broker offers me negative balance protection.

If I apply a leverage of 1:100

Does this mean £1 will return me £100 or does this mean instead I have £100 to invest, rather than withdraw?

Reply 1

ThatguyAl

Original post by Anonymous

A broker offers me negative balance protection.
If I apply a leverage of 1:100
Does this mean £1 will return me £100 or does this mean instead I have £100 to invest, rather than withdraw?

It simply means that you can't lose more money than you have on your account.
Remember that there is a much higher chance that your £100 will turn into a £1 rather than the other way around.

It's your money and you do what you want but I'd suggest to stay away from leverage trading unless you have years of experience in trading, you know exactly what you do and you are okay with losing whatever money you have deposited.

Considering you aren't familiar with basic terms I strongly advise you to stay away from leverage trading. You are more likely to win in a lottery.

Reply 2

Anonymous #1

Original post by ThatguyAl

It simply means that you can't lose more money than you have on your account.
Remember that there is a much higher chance that your £100 will turn into a £1 rather than the other way around.
It's your money and you do what you want but I'd suggest to stay away from leverage trading unless you have years of experience in trading, you know exactly what you do and you are okay with losing whatever money you have deposited.
Considering you aren't familiar with basic terms I strongly advise you to stay away from leverage trading. You are more likely to win in a lottery.