What is “4x Day Trade” Leverage?
You can increase your purchasing power up to 4x by using 4x Day Trade leverage. However, please note that when doing 4x Day Trade, you are required to close the position 30 minutes before the exchange hours end (3.30 WIB or 2.30 WIB during Daylight Saving Time).
If you still have open positions within 30 minutes before the market closes, then all Day Trade positions with 4x leverage, including orders with stop loss, take profit and limit orders that you have previously placed will be sold using a market order.
For example:
|
Condition |
Stock Price |
Total Shares |
Total Share Value |
Leverage |
Margin |
Leverage Loan |
Position Value |
Profit / Unrealized Loss |
|
Early Purchase |
$100 |
4 |
$400 |
4x |
$100 |
$300 |
$400 |
$0 |
|
After the price went up |
$110 |
4 |
$440 |
4x |
$100 |
$300 |
$440 |
$40 |
|
After the price drops |
$90 |
4 |
$360 |
4x |
$100 |
$300 |
$360 |
- $40 |
|
Exchange Closing |
- |
- |
- |
- |
- |
- |
- |
Realized P&L |
Explanation:
-
Initial Purchase: You buy 4 shares at $100 each with 4x leverage. You only need $100 as margin, for a total position value of $400.
-
After Price Rises: If the price rises to $110, the position value becomes $440. The unrealized profit is $40 (+40% of margin).
-
After Price Drop: If the price drops to $90, the position value becomes $360. The unrealized loss is $40 (-40% of margin).
-
Market Closing: If there are still open positions 30 minutes before the market closes, all shares will be sold, and any profit or loss will be realized.