Basic Knowledge to Invest

IUX Invest offers two investment options:  investing by amount and unit.

 

What are these two options? And how are they different? 

 

 

What is Amount?

Amount refers to the money you use for investing. The IUX Invest platform uses USD as the base currency for opening positions.

 

 

What are Units? 

Units refer to the quantity used for investing. For example, buying two shares of AAPL equals investing using two units.

 

 

Calculating the Amount.

Calculating the amount means you invest by units instead of a specific amount. 

 

To find out the investment amount, you can use the following formula:

 

For example, you buy AAPL by investing 5 units at 200 USD per unit. Therefore, you will need to invest the following amount:

Amount = Units x Open Price

Amount = 5 x 200

Amount = 1,000 USD

 

 

Calculating the Units.

Calculating Units means you choose to invest by Amount instead of Units.

To find out the units, you can use the following formula:

 

For Example, you buy AAPL by investing 1,000 USD, with the current price at 200 USD per unit. So you will get investment units as follows:

Units = Amount / Open Price 

Units = 1,000 / 200 

Units = 5

 

 

When you start investing, you can choose between two investment formats: investing by an amount of money or investing by unit. Also, there are essential details you need to know, such as calculating for trades using currencies other than US dollars or considering the amount of money you would like to invest before making any trades, especially when using leverage.

The most effective way to learn is through real practice. At IUX, we provide a free Demo Account for learning to trade, complete with unlimited virtual funds to practice under real market conditions. This comes with tools and resources for trading without worrying about risks or losses. Try free trading with IUX today!