What Is the Leverage Available for Trading the EURO STOXX 50 on eToro?

Written by Mike Druttman

Fact checked by Wikitoro Team

Updated Mar, 2024

For trading the EURO STOXX 50 on eToro, retail clients associated with eToro (Europe) Ltd, eToro (UK) Ltd, or eToro AUS Capital Limited can use leverage of up to X20. Clients of eToro (Seychelles) Ltd have the option to use higher leverage, up to X100.

Unpacking the Topic

Embarking on the trading journey can be daunting, especially when it comes to understanding the tools at your disposal. That's why I've put together this concise guide to clarify the leverage options available for trading the Euro Stoxx 50 on eToro. My aim is to demystify these concepts for beginners, so read on to enhance your trading knowledge.

Using Leverage on EUSTX50

The Euro Stoxx 50, or EUSTX50, is a leading index that represents the performance of blue-chip stocks in the Eurozone and can be traded on eToro. Leverage is a feature you can utilize on the platform to increase your investment capacity. It allows you to open a position with a larger market exposure while committing a smaller initial capital, effectively multiplying your buying power in the EUSTX50 index.

Available Leverage for Trading EURO STOXX 50

The leverage you can use when trading the eToro Euro Stoxx 50 asset varies depending on the eToro entity managing your account. This is outlined in the Terms and Conditions you agreed to when you registered. To find out which entity you're with, navigate to your Settings and then Profile Settings. At the bottom, you'll find information about your specific eToro entity and its regulatory supervisor.

Here's the deal:

If your account is with eToro (Europe) Ltd, eToro (UK) Ltd, or eToro AUS Capital Limited, you're entitled to use leverages of X1, X2, X5, X10, and X20 for trading the EUSTX50, as it's classified as a major index. Clients of eToro (Seychelles) Ltd have access to leverage options of X1, X2, X5, X10, X20, X50, and X100. Personally, my account falls under eToro (UK) Ltd, and when I traded the EUSTX50, the maximum leverage available was indeed X20.

How to Apply Leverage on the EUSTX50 Index via eToro?

Applying leverage to your Euro Stoxx 50 trade on eToro is straightforward:

1. Click on 'Leverage' in the trade window.
2. Choose the level of leverage that suits your trading strategy.
3. With your leverage selected, click 'Open Trade' to begin your leveraged position.

⚠️ Approach Leverage with Caution

While leverage can potentially enhance the returns on your investment, it's important to approach it with caution due to the increased risk. Leverage can significantly magnify losses, so it's essential to use it judiciously and within the bounds of your risk tolerance.

Wrapping Up

Now you're equipped with the knowledge of what leverage options are available for trading the Euro Stoxx 50 index on eToro and the means to apply them. Understanding how to leverage your trades is a powerful aspect of trading, and with this guide, I hope you feel more confident. Remember, leverage is a potent tool, so handle it with care and caution.

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