/biz/ - Business & Finance

>>1584652

Here let me demonstrate

At a leverage of 1:20 I can put in 630 bucks for 2k shares. Which is the equivalent to 13k bucks. If the shares go up 5 cents I make 90 bucks. If the shares go down 5 cents I lose 90 bucks.
This makes for huge gains and losses procentual to your investing capital. I don't need to mention that CFDs are extremely risky but an additional risk is if your capital is too low and triggers a margin call and your positions get automatically closed because your losses would exceed your capital. So it's easy to lose everything if you poker with too much money. AMD drop over the weekend made me really panic because it almost triggered a margin call and I had to add another 1000 bucks to prevent it.
I'm really happy that AMD bounced back. Now I made 300 bucks from like a 600 bucks investment, which is a 50% return which is nice.