My idea about leverage is to advantage of opportunities for shorter periods of time, shorter term bets. And as @akash_das has pointed out, if the value of pledged securities go down, there will be a margin call, or the lenders will sell the securities at the prevailing prices.
When market is rising, for trading bets, we can be wary of the rise and if we act fast, we wont lose much, even without stop loss in place. When market is falling, with investing, I cannot know when the up move will start, I may have to wait for months and months, so except for the fact that I had bought something at a lower price, I will have no other solace. With shorter term trades, there is a holding period and a stop loss, so the loss will be as per the plan.
Never thought about buying something for longer term with leverage. An idea to ponder, though.
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