4 tips for investing in turbos
The leverage effect is what makes investing in turbos interesting. Turbos are investment products that allow you to respond to a price increase or decrease of an underlying asset by means of leverage. Such an asset can be a share, indices, bond, currency or commodity. This article will provide tips on investing in turbos .
When investing with turbos, you can choose the leverage yourself. The higher the leverage amount, the stronger the reaction of the value of the turbo will be compared to the underlying value. Money can be earned with turbos both in the event of a decrease (short) and an increase (long) in value.
Useful to know
Investing in turbos has gained a lot of popularity in recent years, both at home and abroad. If investing in turbos seems like something for you, we have listed a number of tips for you.
Tip 1: determine your own strategy
You are the best person to determine your strategy. If you think an underlying value will rise, choose long. If you think the value will fall, choose short. A useful tip when assessing a price is to compare the current price of the shares, currency, commodities, bonds or indices with the average price target of analysts. This often gives a good indication of the price expectation.
Tip 2: Start with low leverage
Are turbos new to you? Then we recommend starting with a low leverage until you get the hang of investing in turbos. The price fluctuations will be more intense than you are used to with other forms of investment. That is why Compareallbrokers.com recommends starting with a lower leverage . The higher your leverage, the greater the potential loss if your estimate turns out to be incorrect.
Tip 3: Limit the investment
This point is partly related to tip 2. Be careful, especially in the beginning, when investing with turbos. Therefore, use the following rule of thumb. Suppose you buy a share with a value of €10,000. Then calculate the maximum investment for the turbo. You do this by dividing the investment (€10,000) by the leverage. Is the leverage 10? Then you invest a maximum of €10,000 / 10 = €1,000.
Tip 4: Start with a demo account
A turbo is easy to buy at a bank or broker . Via Compareallbrokers.com you can easily compare the brokers that issue turbos. We do recommend that you practice first in a demo account, with fictitious money. When you have mastered investing with turbos, you can switch to using real money.
Compare brokers and start investing in turbos
Are you excited about investing in turbos after reading this article? Compare brokers with turbo possibilities and find the broker that suits you best!