5. Leverage can make your money go further
IG offers leveraged forex trading, which can make your money go further - although it's important to be aware that it also increases your risk. Leverage enables you to open a position on the currency market by paying just a small proportion of the full value of the position up front. For example, opening a trade on EUR/USD might require a deposit worth 2% of the total value of the position. This initial deposit is referred to as margin.
The profit or loss you make will reflect the full value of the position at the point it is closed, so trading on margin offers an opportunity to make large profits from a relatively small investment. However it can also amplify any loss, so losses can exceed your initial deposit. For this reason, it’s important to consider the total value of the position before you trade.
To help you manage your risk, IG offers a range of risk-management tools including stop losses, price alerts and running balances.