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UK educational scenario: enter an asset return, financing cost and annual threshold to compare modelled outcomes. No product-specific liquidation is modelled.
Limit: £0–£1bn
Limit: 1×–10×
1× = no borrowing; 2× = twice your capital exposure.
Limit: −100%–100%
Limit: 0%–100%
Limit: 1–100 whole years
Limit: 0%–100%
Checked at year-end; not a broker limit.
£11,500
At +10% underlying annual return over 1 year.
No annual checkpoint breach is modelled for this return.
Break-even excludes fees and tax. Threshold status checks every year-end; this ratio reflects your selected return at the final checkpoint.
Share links include your capital, leverage, return, borrowing rate, holding period and threshold assumptions. The link is not encrypted.
Annual underlying return is held constant for 1 year(s); financing compounds annually. Threshold breach is checked at year-end only.
Exact modelled return and annual threshold result
| Underlying annual return | Unleveraged return | 2× return | Annual threshold status |
|---|---|---|---|
| -50% | -50.00% | -105.00% | Threshold breached |
| -40% | -40.00% | -85.00% | Threshold breached |
| -30% | -30.00% | -65.00% | Not breached |
| -20% | -20.00% | -45.00% | Not breached |
| -10% | -10.00% | -25.00% | Not breached |
| -5% | -5.00% | -15.00% | Not breached |
| 0% | 0.00% | -5.00% | Not breached |
| +5% | 5.00% | 5.00% | Not breached |
| +10% | 10.00% | 15.00% | Not breached |
| +15% | 15.00% | 25.00% | Not breached |
| +20% | 20.00% | 35.00% | Not breached |
| +30% | 30.00% | 55.00% | Not breached |
| +40% | 40.00% | 75.00% | Not breached |
| +50% | 50.00% | 95.00% | Not breached |
Unleveraged capital and 2× ending equity use the same underlying return and 1-year horizon. Amounts are rounded to whole pounds.
Ending equity values (£; nearest pound)
| Underlying annual return | Unleveraged ending capital | Leveraged ending equity |
|---|---|---|
| -50% | £5,000 | -£500 |
| -40% | £6,000 | £1,500 |
| -30% | £7,000 | £3,500 |
| -20% | £8,000 | £5,500 |
| -10% | £9,000 | £7,500 |
| -5% | £9,500 | £8,500 |
| 0% | £10,000 | £9,500 |
| +5% | £10,500 | £10,500 |
| +10% | £11,000 | £11,500 |
| +15% | £11,500 | £12,500 |
| +20% | £12,000 | £13,500 |
| +30% | £13,000 | £15,500 |
| +40% | £14,000 | £17,500 |
| +50% | £15,000 | £19,500 |
Ratio is ending equity divided by ending position value. Position value of £0 has no defined ratio and is omitted from the chart; the threshold flag still includes negative equity at annual checkpoints.
Exact ending equity ratio and annual threshold result
| Underlying annual return | Ending equity / position | Entered threshold | Breach at any annual checkpoint |
|---|---|---|---|
| -50% | -5.00% | 25.00% | Yes |
| -40% | 12.50% | 25.00% | Yes |
| -30% | 25.00% | 25.00% | No |
| -20% | 34.38% | 25.00% | No |
| -10% | 41.67% | 25.00% | No |
| -5% | 44.74% | 25.00% | No |
| 0% | 47.50% | 25.00% | No |
| +5% | 50.00% | 25.00% | No |
| +10% | 52.27% | 25.00% | No |
| +15% | 54.35% | 25.00% | No |
| +20% | 56.25% | 25.00% | No |
| +30% | 59.62% | 25.00% | No |
| +40% | 62.50% | 25.00% | No |
| +50% | 65.00% | 25.00% | No |
A complete valid share link takes priority over consent-enabled saved inputs, followed by the editable sample. Changes update the share link; local saving requires functional-storage consent. Manage saved inputs.
This is a fixed-rate, annual illustration comparing the entered leveraged position with unleveraged capital under the same asset-return assumptions.
Each year the model compounds the entered asset return on the position and the borrowing rate on the debt. It calculates equity as position value minus the remaining borrowing balance, then measures return against starting capital.
The selected equity-to-position threshold is checked at year-end. The model does not simulate intrayear price movements, broker margin calls, close-outs or forced sales; financing break-even is before fees and tax.
Borrowing magnifies losses as well as gains; this model can show negative equity while debt continues to accrue. It is an educational illustration, not a quote or suitability assessment, and it excludes spreads, withdrawals, changing rates and tax. A zero equity ratio is not a safe product limit.
Real outcomes depend on the provider, product terms, fees, close-out rules and applicable protections. FCA retail CFD protections apply only to covered products and clients; they are not general rules for every way of borrowing to invest. Check the exact terms and firm permissions, and only risk money you can afford to lose.
These FCA sources explain UK investment and leveraged-product risks. MoneyHelper is the consumer guidance service provided by the government-sponsored Money and Pensions Service (MaPS). These sources do not validate a provider's rates, margin rules or this educational model.