1. Margin account: This is a common leveraged trading method. Investors can deposit funds into margin accounts opened by brokers and get loans from brokers to buy more shares.
The leverage ratio of margin account is usually 1:2 or 1:4, which means that you can use 1000 in your account to borrow 1000 or $2,000 provided by the broker to buy more stocks.
Option trading: Option is a financial derivative that allows investors to buy and sell stocks at a fixed price on a specific date in the future. Option trading usually requires a certain margin, but it has a higher leverage ratio than buying stocks directly.
For example, investors who buy options may only need to pay a small part of the actual price of stocks to control a certain number of stocks.
Third, financing transactions: If you already own a certain number of stocks, you can borrow money through financing transactions in order to increase the funds for buying more stocks.
In financing transactions, you can use your own stock as collateral to apply for a loan from a bank or broker. Financing transactions usually need to pay interest and loan fees.
4. Futures trading: Futures trading is a financial derivative trading method similar to option trading. It allows investors to buy and sell a specific stock contract through leverage, which stipulates the future delivery price of the stock.
Futures trading usually needs to pay a certain margin, but it has a higher leverage ratio than buying stocks directly.
In short, leveraged stock buying is a high-risk and high-return investment strategy, which requires investors to carefully consider according to their own risk tolerance and investment experience.
When conducting leveraged trading, investors need to read the relevant contracts and agreements carefully and make sure that they understand all the costs and risks. At the same time, investors need to be cautious and calm, and avoid blindly following the trend and excessive trading.