What is leverage and how does it work?
Leverage is a feature that allows you to buy up to 4x more shares with your balance. By using this feature you have the potential to gain more profits with less capital.
Currently, Pluang offers leverage with a ratio of 2x and 4x day trade. This means that when you top up $100 to your leveraged account using 2x leverage, your buying power can increase to $200. If you use 4x day trade, your buying power can increase to $400, but 4x Day Trade Leverage requires you to close your position before the trading hours end.
For example:
|
Condition |
Non-Leverage |
Leverage 2x |
Leverage 4x |
|
Purchasing power (when topping up $100). |
$100 |
$200 |
$400 |
|
Stock value increases (unrealized gain). |
$110 |
$120 |
$140 |
|
Stock value falls (unrealized loss). |
$90 |
$80 |
$60 |
If you use 2x leverage, you will be charged a daily leverage fee that will be charged to your leveraged account every day after the market closes if you hold leveraged US stocks after the market closes. The Daily Leverage Fee will be charged every day, including weekdays and weekends. The fee varies depending on the value of your position.
You can read more information about calculating daily leverage costs here:https://pluang.com/biaya?feesTab=us-stocks