Investment Using financial leverage is one of the easiest and quickest ways

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Using shares and selling assets. 2. Personal finance This type is the most intuitive and common, as many people in some situations resort to taking loans for the purpose of obtaining more assets that will potentially increase their funds for whatever need they have. In this case, leverage is a debt on the borrower, regardless of his need that prompted him to use leverage. * In these types of leverages, make sure that what you will buy will bring you a financial return equal to the amount borrowed.

And do not let your emotions control you, as wrong behavior can completely Phone Number Data ruin your financial life. 3. That investors use to increase their purchasing power and enhance their gains. In the investment field, this is called margin investing, and it is very similar to the conventional form of leverage in trading. Where it is often borrowed money from a specific broker to carry out the investment process on a larger scale, but it differs from the field of trading with regard to the value of the borrowed funds, as it does not exceed 50% of the margin. 4. Production This type of financial leverage is specific to productive factories, and to understand it, imagine with me that you are a factory owner.



The factory has fixed expenses, such as salaries, rent, etc., while it has variable expenses, those related to energy, raw materials, and production requirements. If this factory can obtain additional funds, it will be able to increase its production operations, and therefore it will be able to achieve greater profits. 5. Professional trading (the type of leverages we care about) In the field of trading, anyone can use leverage, if they meet some conditions, but not everyone is able to obtain any amounts of money they want. Professional traders can take any leverage they want with large amounts of money, because their loss rates are low and their profit rates are high. The numbers here are frightening. Some professional traders may be able to obtain a leverage of 1:500, or 500 times, a terrible number.