I.45. The concept of the shoulder. The relationship of leverage with a bank loan.

The broker provides its clients to use the borrowed funds of the bank on the general terms of the loan of this bank immediately while working with the trading terminal. This allows you to increase the size of your account while using the loan. The multiplicity of increasing your money using a loan is called leverage. Let’s say you have 30,000 rubles. Then you saw that the situation is developing in the way you need and would like to use the borrowed funds of the broker to execute the transaction. You decide to borrow another 30,000 rubles and eventually make a deal for 60,000 rubles. In this case, your leverage will be equal to 2. For the use of borrowed funds, you will pay the bank money for each day of the loan while such a transaction was opened (even for weekends and holidays, because this is a bank loan and its accrual is not related to the days of the exchange). For example, you borrowed 30,000 rubles at 20% per annum and made a deal within 10 days. You will pay a commission to the bank for 10 days equal to: 30000*(20%/365*10) = 164,38 rubles.

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