"Give me a fulcrum and I can move the earth." - Archimedes.

But stockholder friends said: "Give me a leverage fund, and I can leverage the stock market." (Just kidding) What is leveraged capital? It has such great charm that countless people are chasing it. As fresh leeks and old leeks, you need to know what leverage funds are, which can allow you to avoid unnecessary risks.

What is leveraged funds? It can be described as several points:

First, securities lending transactions refer to accepting short-selling transactions, which allows securities companies to earn reverse trading commissions, and at the same time allows investors to lock in the risks of long positions. Securities companies lend their own stocks or stocks in client investment accounts to short-selling investors. Investors borrow securities to sell and return the same type and number of securities at maturity with interest.

Second, credit card overdraft refers to overdrafting all the money in the credit card for stock trading.

Third, bank loans refer to large principal amounts that can be mortgaged to banks for loans. Generally, bank loan interest rates are not high.

Fourth, house mortgage refers to mortgaging your own money to the bank for loan business and then conducting stock trading. Considering the risk factor assessment, this kind of transaction is not advisable.

Fifth, using various borrowings refers to cashing out various lending platforms to conduct stock transactions. However, the interest rate is very high, so do not touch it.

Combining the above points with leverage funds, have you done any of these things? If so, you should stop leveraging funds immediately, and it is best to use free money to buy stocks. As an ordinary investor (retail investor), you must clearly understand that you are an ordinary person. We can't make big money in the stock market. We can only improve our lives, not change them.