Understanding Leverage: Benefits, Types, Risks & Asymmetry
Understanding Leverage: Benefits, Types, Risks & Asymmetry
January 11, 2023
Ironhold Capital: Leverage is one of the most important concepts in investing. It refers to the use of debt to finance transactions that may not be executed only with one’s own capital. Understanding the implications of leverage is crucial if one wishes to become an intelligent investor. If used well, leverage can increase returns on investment. This is because one can achieve greater absolute returns with more substantial initial capital. But there’s a twist. Read more…