Customisable leverage
Trade on your own terms
CMC Markets has revolutionised CFD trading with the introduction of customisable leverage. This gives you a greater degree of control over your investments. You can decide on each and every order ticket just how much margin you wish to use. In effect, you have the ability to de-leverage the product by selecting your own margin amount. You can control how much you want to leverage each product (subject to the minimum margin requirements). You can choose high, medium or low leverage – the choice is yours – putting you in control of the markets you want to trade and letting you trade on your terms.
Invest or trade?
Trade:
If you wish to trade short term, then you might decide to use the minimum pre-set margin requirement, which for company CFDs starts at just 5%. In this scenario, you are effectively borrowing the remaining 95% from CMC Markets and will incur a financing charge if you hold the position open overnight (past 17:00 New York time).
With this option, you have the scope to trade off short-term price movements without having to tie up a large percentage of your own capital. However, remember that you will still have exposure to the full value of your position, so you may lose more that your initial deposit if you the market moves against you.
Invest:
If you want to invest longer term, your company CFD position can be de-leveraged to ride out the volatile trading sessions that may lead to your position being closed out if you have a highly leveraged position. By de-leveraging and selecting a lower borrowing amount, you balance the risk against financing, and by borrowing less you are less likely to be stopped out of your position. It is a question of balancing risk against leverage. However, the point is, we give you the tools to choose. The choice is yours.
Traditionally, this would not be possible with a regular CFD provider, but CMC Markets gives the control back to you. You can invest 10%, 50% or even 100% of the total position size, and the less you borrow the lower your overnight financing charge.
So you can combine both investing and trading within one CFD account. However, remember that regardless of the amount of leverage you chose, when trading company CFDs you do not own, or have any interest in, the underlying asset. Instead, you are trading the difference in price from when you open your company CFD position, and when you close your company CFD position.
To browse our product library and see the margin requirements for all our company CFDs, click here.