Margin & Leverage
Maximize Your Trading Potential with Margin & Leverage
Arctic Summit Capital offers flexible leverage options, allowing you to increase market exposure while managing risk, with higher leverage available for advanced account tiers.
Amplify Your Trading Power
Arctic Summit Capital offers margin and leverage trading to help our clients increase their market exposure with less upfront capital. Leverage allows traders to control larger positions than their initial deposit, making it possible to amplify potential profits. But it also increases risk.
While leverage can be a powerful tool, it’s essential to understand both its advantages and the risks involved before using it in your trading strategy.
What is Margin & Leverage?
Margin is the amount of capital required to open a leveraged trade. It acts as a good-faith deposit to maintain your position.
Leverage is the ratio of borrowed funds to your margin. With leverage up to 200:1, traders can enter larger positions than their account balance alone would allow.
Example:
A 10:1 leverage ratio means you can control a $10,000 trade with just $1,000 in margin. A higher leverage ratio increases potential returns, but it also increases potential losses.
Benefits of Trading with Leverage
- Increased Market Exposure: Gain access to larger trades with a smaller initial investment.
- Maximize Potential Profits: Leverage allows traders to amplify returns on successful trades.
- Flexible Account Tiers: Higher-level accounts gain access to larger leverage ratios, offering greater flexibility for experienced traders.
Understanding the Risks
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Magnified Losses: While leverage can increase profits, it also increases potential losses which can exceed your initial deposit.
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Market Volatility: Highly leveraged trades can be impacted by sudden price movements, requiring careful risk management.
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Margin Calls: If the market moves against your position, you may be required to deposit additional funds or risk your trade being closed.
Responsible trading is key. We encourage clients to use leverage wisely, set stop-loss orders, and develop a solid risk management strategy.
Trade Smarter with the Right Leverage for You
Leverage can be a valuable tool—when used wisely. Open your account today and access flexible leverage options tailored to your experience level.
