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There are even leveraged ETFs for those without margin accounts: https://www.investopedia.com/terms/l/leveraged-etf.asp https://www.investopedia.com/terms/l/le
by nickpinkston 6y ago
There are even leveraged ETFs for those without margin accounts:
https://www.investopedia.com/terms/l/leveraged-etf.asp https://www.investopedia.com/terms/l/leveraged-etf.asp
- georgeecollins 6y agoYes, but those ETFs are professionally managed high leverage accounts. It's not your uncle day trading at 10:1 margin. And I know your uncle can probably find a way to make a crazy risky investment. The idea is just to try and cut down on that to avoid systemic risk.
- thekyle 6y agoAt least with a leveraged ETF you'll never lose more than you invested.
- smabie 6y agoIt's not particularly hard to get much higher leverage using futures. Leveraged ETFs don't go above 3x, so they're kind of middle of the road between margin accounts (2x) and futures (10-20x). Or with forex trading, retail investors can get like (50-400x). In terms of risk, it's important to consider the volatility of the underlying and the leverage ratio. New home owners are taking on massive leverage on a new home purchase, but usually the low volatility of real estate protects them from too much pain.