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What are leveraged positions？

幫考網(wǎng)校2020-10-10 16:00:52
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Leveraged positions refer to investments or trades in which an investor borrows funds or uses margin to increase their exposure to an underlying asset. This means that the investor is using borrowed money to increase their potential returns, but it also increases their potential losses. Leveraged positions can be found in various financial markets, including stocks, bonds, currencies, and commodities. They are often used by traders and investors to amplify their gains or hedge against potential losses. However, leveraged positions require a high level of risk tolerance and careful management to avoid significant losses.
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