Never underestimate the power of $1

[Alston Liu]

Investing money wisely is crucial for achieving long-term financial goals. But what is the point of even investing while I only have $1 in my pocket? I might as well wish I could hit a lottery, right? As difficult as it is, there are still ways to make $1 meaningful and achieve your financial goal.

Instead of buying a drink or snacks to satisfy your stomach, you could buy a financial product like fractional shares, high-yield savings accounts, ETFs, and other financial assets. Generally, these products allow you to diversify your portfolios and offer higher interest rates. Normally they require small amount of investment as low as $1. But the thing is, the small amount restricts diversification and the potential for exponential growth. To put it another way, there aren’t many miracles that go with $1.

So that’s it? Are there any ways to boost your investment potential? The answer is yes. With CFD trading, investors can explore the potential of leverage to maximize their returns. CFD is a “contract for difference”, and it is a derivative trading instrument that allows traders to speculate on the price movements of financial assets without actually owning the underlying assets. The trick is that investors don’t need to put a lot of money in their CFD trading account to make huge profits.

You might ask how could it possibly happen. Well, that is the power of margin and leverage. Margin is the initial deposit required to open a position. Let’s say the margin requirement is 1% and investors want to trade a contract worth $100, they would only need a $1 deposit as margin. This creates a magnifying effect on their potential profits or losses to the amount they initially invest. This magnifying effect is known as leverage.
The higher the leverage is for a trade, the lower the margin requirement, but the higher the risk of loss.

For example, if one investor wants to buy $100 worth of a stock in an unleveraged trade and another investor does the same transaction with leverage.
The first investor needs to deposit $100 for this trade. However, the second investor opts for leverage x100 which means the margin for this trade will be 1% of the total value. In this case, the margin is $1.

Let’s say the stock value changes by $10. In this scenario:
The first investor will have a 10% profit with a $100 initial deposit.
The second investor will have a 1000% gain with a $1 initial deposit.

By leveraging, traders can potentially have a huge gain with just $1. This is where JRFX, an online CFDs trading platform, comes into play. With over 13 years of industry experience, JRFX offers accessibility to traders of all levels. With a minimum deposit of $1 and various choices of leverage up to 1000, traders can explore their potential profits with JRFX’s user-friendly platform, fast withdrawal, advanced charting tools, and reliable customer support.

Curious to learn more?JRFX is currently running an exclusive promotion! Visit jrfx.com and register with this invitation code 822828 to unlock more benefits!

This article is for informational purposes only and does not constitute financial advice. Trading CFDs involves risk, and it's important to carefully consider your financial situation before engaging in any trading activities. It's recommended to consult with a qualified financial professional for personalized advice tailored to your specific needs.