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Anonymous

18 Apr 2019

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Stocks

How can one make use of leverage investing?

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Isaac Chan

06 Mar 2019

Business at NUS

Levearge investing is a method that "borrows money" to earn a higher investment profit. The profits would be dervied from the difference between the returns on the borrowed money and the interest cost associated with the capital. (https://www.investopedia.com/articles/optioninv...)

There is also an article by Dollars and Sense about Daily Leverage Certificates which showcases different benefits dervied from DLC, and how one can actually make use of it.(https://dollarsandsense.sg/4-ways-can-use-daily...)

I think the general sentiment that I seem to read about on leverage investing is that you got to be very careful, and it may not be appropriate for someone who is new to investment. The upsides and the downsides can be quite extreme. Warren Buffet has warned about it quite a lot also, so I think we all got to be quite careful with leverage investing!

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