Increasing investment capacity through leverage on the Darwinex platform

If as a DARWIN investor you have the leverage option enabled, there is a way to increase your investment amount in the event that you have a profitable open position in a given DARWIN.

 

By way of example, let’s assume that:

  1. We have €5,000 invested in a DARWIN,
  2. The open P/L is €1,000.
  3. The leverage employed is 2x.

If at this point we were to close our position, the platform would automatically retain €200 by way of performance fees.

Our unlevered investment capacity would then be equal to:

Our Initial Investment + Net P/L

i.e. €2,500 + €800 = €3,300

Using 2x leverage as previously, our available investment capacity is now increased to €6,600.

 

As such, we could reopen the same position:

i.e. €5,000 + €1,000 = €6,000

.. with €3,000, and still have another €600 left over to invest.

 

It is advisable to do this type of adjustment periodically in order to increase your investment capacity.

Remember however, that it is best to do this when the DARWIN does not have an open position in order to avoid generating unnecessary commissions.


Additional Resource: Investor Leverage
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2 replies
  1. Jezza
    Jezza says:

    “Remember however, that it is best to do this when the DARWIN does not have an open position in order to avoid generating unnecessary commissions.”
    What is the easy way to know whether a specific DARWIN has an open position ? Is there a flag somewhere ?
    Thanks

    Reply
    • The Market Owl
      The Market Owl says:

      Hi Jezza! The best way to know if a DARWIN has open positions is to check its daily chart and see whether it is moving up and down or not. Alternatively, you can also take a look at its quote price. If it varies that means the DARWIN is trading at the moment. Best regards.

      Reply

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