Operations on financial market offered by Gedamo Investments enables customers to carry out substantial amounts using a small percentage of the capital as margin collateral. The leverage generated as well as determine a possible increase in profits leads, of course, a greater risk of loss.
Example: The customer has an account of EUR 50.000 with Gedamo Investments. He invests an amount of EUR 1.000.000 / USD. This corresponds to a ratio of 5% margin (50.000 is in fact 5% of 1.000.000).
How can the customer invest 20 times the amount of money it holds? The answer is that Gedamo Investments provides the capital necessary to make the transaction. Without margin, the customer would buy or sell only 50.000 currency units at a time.
Our systems are structured so as to prevent the possibility that clients may lose more money than is deposited into the account. If the value of the account were to fall and approach zero, an automatic system operates by closing all open positions. This protects the investor from losing more money than is deposited in his trading account.
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