UBRD Customers Offered Financial Leverage

16 June 2017 (13:39)

UrBC, Yekaterinburg, June 16, 2017. Customers of the Ural Bank for Reconstruction & Development (UBRD) can now use the bank’s financial leverage options and partially back up their trading transactions with amounts in U.S. dollars and euros, the bank’s press service reports.

According to the bank’s Finance Markets Director Vladimir Zotov, leveraged transactions result in higher ROI.

‘An investor can now use a convenient mechanism backed up with both their own money and the funds borrowed from the bank. Our customers can trade amounts that are five to six times larger than their original deposit. For example, if an investor only has a thousand dollars, our leverage options allow them to trade six thousand (their own money plus five thousand in borrowed funds). Financial leverage is one of the ways to make more profit on markets with either upward or downward trends,’ Zotov says.

The strategy is to buy foreign currency on the declining market (‘long position’) and to sell the foreign currency provided by the bank on the growing market (‘short position’). The amount of the loan the bank can issue depends on the particular customer’s account balance.

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