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3
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2answers
139 views

Investing using leverage

As a trader, I understand the premise of Leverage and Margined accounts. I understand that it is almost necessary to use leverage in order to make money from trading. But the question is about ...
1
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3answers
68 views

Can I trade options purely as a leveraged product?

Following the Three Ways to Buy Options article from NASDAQ, there are supposedly three different ways to trade options after buying them: Exercise the option at maturity Exercise the option before ...
1
vote
2answers
69 views

Is there an academic framework for deciding when to sell in-the-money call options?

I've been buying 1-year at-the-money call options on various stocks as a way to increase my leverage. I almost never regret selling them once they are up 40%. There are many times when they've been ...
7
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5answers
2k views

Pros/cons of borrowing money using a mortgage loan and investing it in a low-fee index fund?

I'm wondering if this investment strategy would work: I get a mortgage loan for $300K at a 3% rate (realistic for current 5-year fixed mortgage rates here in Canada). I invest the proceeds in a ...
-6
votes
1answer
126 views

How can I get leveraged money

lets say I have 25k USD and I have found a good opportunity. how can I convert that 25k to 250k. This could be any investment not just Forex or ETF.
3
votes
4answers
1k views

Is CFD a viable option for long-term trading?

Something really does seem seedy that if I invest $2500, that I'll make above 50k if the stock doubles. Is it really that easy? Looking at the opposite side, yes my investment can vanish from just a ...
4
votes
1answer
2k views

Calculating the profit earned from a leveraged futures contract

How do we calculate the profit/loss of Futures contract? For example, If I had a Futures contract that had $10 000 as the underlying, it had $1000 margin and the Futures contract itself was worth $3. ...
5
votes
5answers
687 views

Can you beat the market by investing in double long ETFs?

Certain ETFs double the daily rate of return of certain indices. Can you use such ETFs to beat the market (not on a risk-adjusted basis, just in terms of pure returns)? I have read that When ...
5
votes
4answers
2k views

Are Forex traders forced to use leverage?

I heard today that all Forex traders are forced by the Forex companies to use large leverages. Is this true? I understand this might be good for some companies, but possibly bad for the traders. How ...
2
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2answers
209 views

How does leverage work?

Can someone give (or point me to) a concrete example of how leverage trading works? Let's say in Forex. I have $1000, and I want to short/long the Euro at a 1:100 leverage. How much do I stand to ...
-1
votes
3answers
3k views

Definitions of leverage and of leverage factor

From investopedia Here's an example of a "yen carry trade": a trader borrows 1,000 Japanese yen from a Japanese bank, converts the funds into U.S. dollars and buys a bond for the equivalent ...
0
votes
2answers
569 views

What is volatility drag?

Given a leverage portfolio, what does the term volatility drag mean? And how does it affect the value of the portfolio?
10
votes
3answers
579 views

Investing in a leveraged index ETF for retirement. Risky?

I'm 23, and in addition to my 401k at work, I have a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%. Over the past 50 years the S&P has averaged around ...
1
vote
4answers
555 views

Is the gold and silver in the GLD and SLV ETFs leveraged?

There are various blogs and videos that indicate that the gold that GLD holds (via HSBC) and the silver that SLV holds (via JP Morgan) is leveraged 50 to 1 or 100 to 1. For me there are some ...
1
vote
1answer
77 views

Protecting Gains: Buying a Put vs. Leveraged Bear Market vs. Liquidating Long Positions?

I am a long investor looking to protect some of my gains in the recent market rally. What are my options? I know of 3 possibilities: Buying a Put (in say SPY) Leveraged Bear Market (say QID) ...
4
votes
3answers
450 views

High Leverage Inflation Hedges for Personal Investors

I'm looking for an investment that will appreciate against inflation in the US Dollar. I want to be leveraged 10:1 or more. For the sake of argument, let's say I have only $10,000 to invest, which ...
5
votes
1answer
302 views

What are the risks associated with leveraged trading accounts?

What is a leveraged account and why is it mandatory on some trading platforms to operate through leverage? Also, what are the associated risks? Could I end up losing more money than I invested?