Margins

ASSOCIATED PRESS

How To Get The Best Leverage On Your Investment

The key to utilizing leverage responsibly is in actuality quite simple: never utilize leverage if it's not required. Many mistakenly look at leverage as a way to "purchase" an asset at a discount; in actuality, you're shooting yourself in the foot if you have the funds to purchase the asset but instead decide to utilize leverage. The reason has to do with the fact that with leverage, the chances of your trade to go against you and force your broker to issue a margin call goes up.