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Leverage let you buy more shares with less money. For example if you want to buy 100 Barclay's shares at 200p you would need £200 to do so, where's if you have leverage (let's say you pay 10%) then you would need only £20 to buy them.
Where's leverage increases your earnings potential it also increases your losses.
Try http://www.IndependentInvestor.co.UK for more information on leverage and available brokers.
What else can I help you with?
What are the advantages and disadvantages of a high leverage ratio?
disadvantages of a high leverage ratio in financial crisis
What are the advantages and risks of leveraged finance for investors?
One of the advantages is that leverage makes it easier for an investor to assume the amount of risk that he wants (a targeted amount of risk) as opposed to assuming the risk which is inherent in the investment product. A disadvantage is that in most cases leverage increases the cost associated with the investment, because the investor has to pay for the leverage e.g. in the form of an interest payment.
How can two disadvantages of tourist coming to the Bahamas become advantages?
Its depends what the two disadvantages are, and I can help you leverage them to be positive attributes.
What are the advantages of purchasing deep-in-the-money options?
Purchasing deep-in-the-money options can provide advantages such as lower risk, higher intrinsic value, and potential for greater leverage compared to at-the-money or out-of-the-money options.
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
What are the advantages to strategic planning?
Strategic planning is crucial to make blue print of profit generation, gaining competitive leverage , determining operational planning steps.
What are the advantages of investing in deep in the money put options compared to other investment strategies?
Investing in deep in the money put options can provide advantages such as higher leverage, lower risk, and potential for higher returns compared to other investment strategies.
What mean by combine leverage?
combine leverage
What is the birth name of Henry Leverage?
Henry Leverage's birth name is Carl Henry Leverage.
What is composite leverage?
Composite leverage equals financial leverage times operating leverage. Composite leverage is used to calculate the combined effect of operating and financial leverages. Leverage is the ratio of a company's debt to its equity.
What is the impact of information technology on business organization?
Information technology helps businesses leverage their competitive advantages with ease. Managers can communicate throughout the value chain while remaining at their desks.
Difference between operating leverage and financial leverage?
operating leverage is related to the investiment which is runing the business as finacial leverage related to the total equity minus laibalities .
