Anonymous

18 Apr 2019

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General Investing

What do people mean when they say “leverage”?

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Hariz Arthur Maloy

11 Nov 2018

Independent Financial Advisor at Promiseland Independent

It means to borrow money to make more money.

You leverage when you have arbitrage. You earn more than you pay.

For example.

Borrow 100k @ 2.5% to invest @ 6%. I'm leveraging 100k for an arbitrage of 3.5% or $3500.

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