Different Types of Leveraged Investments?

[Harry]

Many leveraged investments enable investors to control more assets with a small amount of money, which is usually called margin trading. The margin is the initial money deposited into a trading account, which will be leveraged to buy or sell assets whose cash value is greater than the deposited amount. Some investors use collateralized margin loans, meaning that if the securities purchased with the borrowed money significantly lose value, the investors can incur debts. If they cannot settle these debts, personal assets might be seized.


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