How to leverage in investment

[Johnson2468]

Investment leverage can be a potent instrument, but it's important to understand how it works and use it sensibly. In essence, leverage enables you to manage a greater number of assets with a lower investment. Your chances of making more money from this can also increase your chances of losing money. Margin trading, where you borrow money from a broker to buy stocks, is a typical method of leveraging an investment. Margin trading is risky, though, because if the market moves against you, you could lose more money than you initially invested. Another way to leverage is through options trading, where you buy the right to buy or sell a security at a certain price. Options can be less risky than margin trading, but they still require careful consideration and management.