Leverage principle in stock refers to: using some funds with fixed interest rate, such as bonds and preferred shares, to improve the return on investment of common stock in capital structure. In other words, the investor's own investment is less, but therefore he may get high profits or big losses.

Leveraged stock is a stock that obtains funds through borrowing, especially through margin credit trading. In investment, the so-called leverage refers to the use of some funds with fixed interest rates in the capital structure, such as bonds and preferred shares, to improve the return on investment of common stocks.

In investment, the so-called leverage refers to the use of some funds with fixed interest rates in the capital structure to improve the return on investment of common stocks. Investors' own investment is small, but they may get high returns or big losses, which is very leveraged.

Leveraged stocks can be divided into three types:

First of all, stock trading requires a cash deposit.

The second is the stock purchased through equity margin.

Third, stocks purchased with legal margin. There are many factors that affect deposits. This is because all kinds of securities are different in nature, denomination and supply and demand. Therefore, when the customer pays the deposit, it will also change with the changes of factors.