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What are advantages of leverage?

In: Business & Finance, Investing and Financial Markets, Business Accounting and Bookkeeping [Edit categories]

Answer:

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.

First answer by ID1546169512. Last edit by Oilgeezer. Contributor trust: 0 [recommend contributor ]. Question popularity: 3 [recommend question].

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