LAXO TRADE: Compounding

Dear Members,

A large number of our investors have problems understanding how compounding percentages work so we decided to write up an explanation of the term.

The case we usually face is that an investor sends us an e-mail wandering how to do withdraw from his account because his balance reads as 0 USD. The cause of this is that, at the time of the investment, the investor had set the compounding percentage to 100%. On the other hand, we have many investors that do not use the compounding percentage at all but, rather, manually reinvest their profit every day. No problems in that case, but there is an easier, automated, way to achieve the same goal.

Compound percentage is, simply put, the amount of profit that gets automatically reinvested and, from that moment on becomes part of the principal and earns interest for the investor.

For example, lets say an investor sets the compounding percentage to 50% when he decided to invest. What now happens, automatically, is that 50% of the profit his principal makes gets added to the principal and the rest of the profit goes to the available balance. So, if you invest a 100 dollars in the Daily plan with 0 compounding percentage you would be receiving $2 USD to your available balance each day. If you choose to set the compounding percentage to 50%, one dollar would be automatically added to the principal while the other would go to your available balance.

We would also like to note that while you can, indeed, set the compounding percentage during the deposit, you can also change it any time you want to. There are no limits on the amount of times you can change it either, so feel free to experiment.

To change the compounding percentage you need to, after logging in with your account, go to "Your deposits", select "change" under the option "Compounding Percentage", select the amount you want and finally click on "Change".

We hope that this has cleared up the topic of compounding percentage. If you still have questions please do write to us, we will be glad to answer them.

Kindest regards,
Laxo Trade Support

Nov-6-2014 03:57:30 AM

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