4 thoughts on “What does "add leverage" mean?”

  1. Plump leverage refers to stocks purchased by borrowing funds, especially the stocks purchased by using deposit credit transactions. That is, the meaning of buying stocks in loans. If there is 500,000 notes, if you can buy 2.5 million stocks of 2 million shares if you can buy it by 4 times.
    In investment, the so -called leverage is to refer to the capital structure in the capital structure, such as corporate bonds, preferred shares, etc. to increase the return on investment in ordinary shares.
    The dividend of paying corporate debt interest rates or paying for preferred shares is agreed in advance. If the profit obtained by the company's operation is higher than this fixed interest rate, after paying the company's debt interest or preferred dividend, The profit enjoyed by shareholders has increased greatly.
    Extension information

    The leverage stocks can be divided into the following three types:
    1. First, stocks purchased using cash margin transactions.
    2, the second is the stock purchased by the equity margin.
    3, the third is the stock purchased by the legal margin. There are many factors that affect margin. This is because during the transaction process, due to the different nature of various securities, the denominations are different, the supply and demand are different. Therefore, customers must also change with the factors when paying the margin.

    Reference information Source: Baidu Encyclopedia-leverage stock

  2. The leverage in the stock refers to the purchase of stocks by obtaining funds by borrowing, especially to buy stocks by using a deposit credit transaction. If there are 500,000 gold, if you can buy 2.5 million shares of 2 million shares if you can buy it by 4 times, it will be borrowed.

    In investment, the so -called leverage is to refer to the capital structure of the capital structure, such as corporate debt, preferred shares, etc. to increase the return on investment in ordinary shares.

    The dividend of paying corporate debt interest rates or paying payable shares in advance is agreed in advance. If the profit obtained by the company's operation is higher than this fixed interest rate, after paying the company's debt interest or preferred dividend, the institution will be paid. Yu Gui's profits enjoyed by ordinary shareholders have increased greatly.

    The leverage stocks can be divided into the following three types:

    1. The first is a stock purchased using cash margin transactions.

    2, the second is the stock purchased by the equity margin.

    3, the third is the stock purchased by the legal margin.

  3. "Add leverage" meaning:
    The leverage is to pay margin to borrow money for transactions. When using the financial leverage tool, the expenditure of cash flow may increase. It must be considered in this regard. Otherwise, once the fund chain breaks, even if the final result can be huge income, it may be that you must face early in advance. The end of the situation.
    Detailed explanation:
    The financial leverage (leverage) simply is a multiplication number (*). Using this tool can amplify the result of investment. Whether the end result is income or loss, it will increase in a fixed proportion. Therefore, before using this tool, investors must carefully analyze the income expectations in the investment project, or it may also be possible. The safest way to encounter the risk is to reduce the expected income expectations as much as possible, and the risk expectations are as much as possible. The results of the investment decisions made in this must fall into your expectations. In addition, it must be noted that when using the tools of financial leverage, the expenditure of cash flow may increase. It must be considered in this regard. Otherwise, once the capital chain breaks, even if the final result can be a huge income, you can gain a huge income. It is also necessary to face the end of early out.

  4. On the one hand, leverage stocks are amplifying profit, and on the other hand, they will magnify losses. When the stock price rises, leverage stocks are still available. But once the stock price falls, the problem comes. The original normal stocks lost 10,000, which was 10,000, and leveraged stocks were different. The higher the leverage, the more severe the loss.

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