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What does leverage mean in stocks?
The "leverage" in stocks refers to the stocks bought by borrowing money, especially the stocks bought by margin trading. The commonly used stock plus leverage is the margin financing and securities lending of securities companies.

For example, the self-owned funds are 654.38+0 million, and the financing leverage is doubled. You can borrow 6.5438+0 million yuan to operate, plus your own funds, and a * * * 2 million yuan will be sold. After leveraged trading, risks and benefits are amplified. Before the fund transaction of 6,543.8+0,000 yuan, the daily limit can only earn 6,543.8+0,000 x 654.38+00% = 6,543.8+0,000, and the daily limit loss is 6,543.8+0,000 x 654.38+0% = 654.38+0+0,000; Now the daily limit can earn 2 million x10% = 200,000, and the daily limit loss is 2 million x10% = 200,000.

The risks and benefits of leveraged trading are greater than ordinary operations and need to be used reasonably! Leveraged transactions can be opened after consultation with securities companies because loan transactions have interest. Financing interest is calculated by multiplying the interest rate agreed in the financing contract by the actual financing amount and the number of days occupied. The financing interest shall be collected by the securities company from the investor's credit fund account or the way agreed in the contract when the investor repays the financing.

To sum up, leveraged trading has advantages and disadvantages, and good operation can amplify the income.