Leverage

What’s leverage? Leverage is a common investment strategy used in multiple financial markets like stocks, commodities, and also cryptocurrency. It refers to the practice of borrowing funds instead of using your own capital for trade with the expectation of increasing the possibility of greater returns. While leverage allows traders to acquire more assets and thus more profit with limited funds, it also increases the chance of making an equally big loss. A ‘highly leveraged’ company, property, or asset shows that the item in question has less equity and more debt. Both individual investors, as well as organizations and companies, use…