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Spread and leverage

The spread and leverage offered by e a MakeMoney techniques are important factors to take into account before making your choice, as they will strongly influence the amount of profits that you will be able to make. At a general level, the lower the spread and the higher the leverage, the better.

But what are they exactly? The spread, usually indicated in pips, is the difference between the price that you have to pay to buy an assets and the price that you would get by selling it. Therefore, the higher the spread, the harder it is to make profits, and this is why MakeMoney techniques offers lower spreads are often considered favourites.

The leverage (e.g. 100:1, 200:1 etc.) is the amount by which an investor can increase his potential returns of an investment. For example, if you invest $1 with leverage 200:1 and a return of 10%, you will make profits “as if” you invested $200 instead of $1 (which is $20 instead of $2). Therefore, the higher the leverage offered, the higher is your possibility to make big profits. This however, comes also with higher risks, as leverage inflates both profits and losses.

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