3 replies on this article “What is leverage ?”

1. Ashal Jauhari says:

   February 19, 2013 at 5:14 am

   Dear Radhe, any more queries on ‘leverage’?

   thanks

   Ashal

   Reply
   1. radhevajrakaya@gmail.com says:

      February 19, 2013 at 11:30 am

      no sir. still searching.

      Reply
2. Manish Chauhan says:

   November 12, 2012 at 9:35 am

   Let me give you an example .

   When you buy Rs 100 share by paying Rs 100 , its not leveraged

   When you buy Rs 100 share by paying 20 , its called margin trading ! .. Then its called leveraged . its like controlling a big asset by paying a small amount . Like when you buy a 50 lac house by paying 50 lacs , its a normal case

   BUt when you buy a 50 lacs house by paying 10 lacs downpayment and 40 lacs of loan , then its leveraged . any loss or profit you get is on 50 lacs, but you paid only 10 lacs , so always remember , a leveraged situation has high profit high loss possibility !

   Manish

   Reply

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