Current location - Trademark Inquiry Complete Network - Tian Tian Fund - Seek the principle of "leverage effect of hedge funds"! More detailed!
Seek the principle of "leverage effect of hedge funds"! More detailed!
To put it simply: you have 10 yuan, and you borrow 90 yuan. This is called leverage. So, you have 65,438+000 yuan on hand now, so invest it. If the return is 10%, then you have earned 10 yuan. You originally only had 10 yuan. Your return is 100%, which is definitely much more than just investing 10 to get back 1 without leverage.

On the contrary, if you invest 100 yuan and lose 10 yuan, then your original 10 yuan will go up in smoke except 90 yuan, which Yuan You wants to pay back, so using leverage is also very risky.