What are the different types of lever investment?

vehicles such as futures, options and funds traded on the stock exchange (ETF) offer lever investments. Through these vehicles, individuals and institutions can virtually invest in all classes of assets such as stocks, bonds, foreign currencies, agricultural commodities, metals, energy commodities and more. In addition, the lever investment allows investors to propagate profits, even if they can rape the losses anyway if the markets go against them.

Many investments from the lever lever lever lever leverage allows investors to control more assets with a small amount of money, which is usually called marginal trading. The span is initial money stored on a business account that will be used to purchase or sell assets whose money value is greater than the amount stored. Some investors use collateralized margin loans, which means that if securities purchased with borrowed money significantly lose value, investors can cause debts. If these debts cannot align, it can be forBasted personal assets.

The use of investments such as futures is traded through contracts that are agreements between buyers and sellers to exchange a particular asset on a certain date in the future. The futures contract is binding, which means that the asset will be delivered to this particular date, moreover, the asset may belong to almost any class. However, investors can still trade this contract without delivering actual assets. They do this normally by reimbursement by the date of delivery. Futures trading usually allows a leverage effect of up to 10: 1, which means, for example, an investor with dollars $ 5,000 (USD) can control assets worth $ 50,000, which would potentially increase its profits or losses.

Options are lever investments that provide traders right, but not the obligation to buy or sell a specific asset at a specified price for or a pre -trial date in the future.Purchase costs are called bonuses. For example, with a premium of $ 5, it is possible to get the possibility to buy or sell an asset for $ 75 in a certain time frame. If the investor bought the possibility to buy and if the value of the asset subsequently increased to or over $ 85 before the expiry date, it would have the possibility to apply the contract. It can buy an asset for $ 75 and then choose to sell it quickly for $ 85 or more and the pockets are the difference.

There are even ETF options that allow investors to use the same strategies of options on these tools. ETFs are generally designed to monitor specific market indices and are supported by the portfolio of assets they represent. These assets can be, for example, commodities such as gold, oil and the like. This ETF will, in turn, allow investors to trade only as normal stocks and thus obtain an exposure to specific assets that contain it. There are ETFs with Doull or even a triple lever effect, which means that for every 20 percent increaseEré represents the ETF by 40 or 60 percent.

There is also a point foreign exchange destination, also referred to as Spot Forex, which includes trading in currencies to make profits from the Forex market fluctuations. The lever effect in the United States, according to the regulation, is usually up to 50: 1 and in some countries brokers offer a lever effect of up to $ 500: 1. This means that the investor can control currencies worth $ 50 or up to $ 500 with only $ 1. In addition, modern finances offer much more investment in the use of lever lever levers, and therefore the investor of the hunting lever should maintain the current with new field development, because financiers often invent new lever instruments.