What is stock leverage? Most investors may only know about stock leverage through hearsay, but it doesn't matter. Today, the western foreign exchange market will take you to use stock leverage and recommend it to formal stock leverage companies that do leveraged trading. I hope it is useful to everyone.
First of all, stock leverage can be divided into:
1. Shares purchased through cash margin trading.
2. It is a stock purchased in the form of equity deposit.
3. It is a stock purchased through legal deposit.
What is stock leverage? Refers to a tool that uses a small amount of margin to tilt up N times the principal for stock trading. This is a vivid metaphor, the essence of which is to amplify the benefits and risks. When using financial leverage tools, cash flow expenditure may increase. Once the capital chain breaks, even if the final result can be huge profits, you must face the end of early withdrawal. Using stock market leverage in the A-share market can make securities companies borrow securities to sell them, and can also make fund-raising companies issue shares. The existence of stock market leverage is the embodiment of risk awareness.
Stock leverage is mainly the stock bought by margin trading. It is equivalent to borrowing money from institutions and adding it to existing funds for investment, which can make investors small and wide. The so-called leverage refers to the use of some fixed-interest funds in the capital structure to improve the return on investment of common stock. The buyer's own investment is less, but it may get high profits or large losses, and the leverage is greater.
Investors who are new to the stock market will easily find some unprofessional stock leverage platforms because of the sweet words of some advertisers, and make the wrong investment, resulting in a loss of blood. This is the most common mistake made by junior investors. They don't understand the principles and rules of stock leverage, and blindly choose the stock leverage platform, hoping to get more benefits, but the loss outweighs the gain. At this time, investors may ask, what are the credible stock leverage platforms? Here, FXSOLA.COM, the western foreign exchange market, believes that a formal stock leverage platform has the following requirements: