 Hey guys, you're right. It's Mark. I wanted to make a quick video today based on something that I'm really confused with me when I first started out and Really when you you strip it back. It's it's pretty I'm straightforward and that is leverage So essentially leverage. I'm gonna explain it in you know The simplest way possible. Um, it's essentially borrowing money to trade And you know, it's how much money of our into trade is what is what the multiple is, right? So you can see for the most part On it or I'll use my account for example Um, I don't use any leverage any leverage whatsoever, which is times one. That's what no leverage means Right and on it or when you use times one, you're actually getting the real stock not a CFD That's that's a whole different thing. So we'll go into that some other time. Um, but Excuse me. Yeah, so when it's times one, you're not borrowing any money It's your money multiplied by one which equals your money, right? But if we wanted to I've got a couple of positions ironically which are in the red I've got a leverage Let's use this Tesla one for example. Where is it? Where is it? There is CFD So this one I have leveraged by five. Okay. So what that means is I have $130 invested on a leverage of five. So that's $130 Times five. Does that make sense? So my total exposure is I'm gonna embarrass myself I need to get my phone to do a hundred and thirty times five So my real position size is $650 even though I've only invested a hundred and thirty if that makes sense, right? Because you take obviously what you've invested and you multiply it by the leverage Now pros and cons of this pros, right is you can make a massive amount of money Off of money that you don't really have So you can obviously your profits are going to be multiplied by five So let's say, I don't know. I've got this position. Tesla went up ten percent In essence on my position of a hundred and thirty I'll be making 50% on on that position But likewise and as you can see here, I mean if it was to go the other way I lose as much money as if the position was much bigger So I lose the money based on on this example over six hundred dollars I can't remember But I would lose money based on that not the hundred and thirty so I would lose five times more money I hope that makes sense. And I haven't just just rambled on So yeah, so it's typically also what you need to worry about or think about as well And is when you're borrowing money from a toro, they are Charging your fee. I believe it's at kind of what the standard base rate is at the time So you can see the total fees on this position is five dollars. So not only am I down forty dollars And I'm also down an additional five dollars that I've paid in fees to borrow that money Right on the flip side if there's a dividend paid out Which is where a company pays you stock and you're leveraged in a position in Yeah, you saw you actually get that money as well. Let's see if I can find an example of a dividend on a leverage stock No, I think I've closed all them But you can see the fees I'm paying on the leverages And then as I say once you when you get paid dividends, it's multiplied by the five It's simply using Forex. So if we just don't know let's have a GBP USD Well, in fact, let me do this. So we'll look at the Forex Leverages quit Which are a lot more extreme right so you can see you can up to 400 Which you know, you have to be a pro trader but up to 400 which basically means if I was to invest $50 and I did it at times 400 it would my position size right the money that I would be risking would be 50 times 400 right which obviously means I have a massive potential to make money also means that the smallest drop In the in the trade, I would lose a massive amount of money. Also With leverage you have the potential to lose more than the money that you invest right you can lose more than 100 100% of your position. So with you know, your times one stock Leverage or don't have to be a stock times your times one. I have What I have invested Let's just use one trade so I have $50 invested I can only lose $50 on that position because I haven't borrowed anyone's money That's my money and if it if the stock literally went to zero. I Would lose $50 and obviously Facebook isn't gonna go to zero, but just for the sake of each example It went to zero. I would lose $50. However, if that was leveraged, right? So if this was leveraged by five And we're getting into maths now if it was leveraged by five or ten Let's say let's let's say ten because it'd be easy if it was leveraged by ten And then Facebook stock fell by ten percent right rather than being down ten percent I Would be down a hundred percent and then I can add funds to hold that position And then obviously then I'm losing more money than my initial position If that makes sense So basically moral of the story, I thought I'd explain leverage leverage is I think one of the reasons why people start off losing because it's it's so finely balanced It's almost like I don't know it's just You got a tie the time it's more about timing when you're using leverage and the position's got to be just right You can see for the most part on my recent trades It's all one percent or times one and that's just where I'm most comfortable And you don't have these massive swings up ten percent down ten percent up twenty percent down fifty percent And so if you're just starting out and I've done a video I'm about using two percent of your account So if you're just starting out you two percent of your account and times one Leverage on each trade It's going to be you know a lot safer for you you're going to lose a lot less money And ultimately it's going to be more fun. You might make less money, but it's about being consistent There's your consistent over time you're growing your account You got ten thousand you're making two percent on a position or whatever And then you scale it and you scale it and you scale it and then you've got a hundred grand And then you're men and then it's worth it. But anyway Yeah, so I hope that was helpful I hope that explained that a little bit If you guys enjoyed the video make sure you like it and I also have a lot more videos like this on my YouTube channel So feel free to You know check those out Yeah, so like it if you have any questions at all whack them in the comments Whether it be a toro or YouTube or if you want to have a conversation with me And we can kind of go back and forth It's best to DM me on Instagram, which is Mark Freeman official, you know One of them Instagram kids, but yeah, thanks for watching guys, and I will catch you Probably tomorrow