That's where the "leverage" comes in. The exact mechanism is a little confusing to me, but I think it works like this: Say you have $100. You can invest that $

That's where the "leverage" comes in. The exact mechanism is a little confusing to me, but I think it works like this: Say you have $100. You can invest that $100 at 2% interest and earn $2. You end up with $102. Leverage is complicated, and I'm not totally sure I understand how it work, but basically it allows you to amplify your money. Instead of just investing $100, you take out a loan of $10,000 at 1% interest: you know you'll have to pay back $10,100, but you've already got that much. Now you've take that $10,100 and invest it at 2%, and you get $202 interest -- you now have $10,302. You pay back the $10,100 you owe, and you end up with $202, having earned 100x more than if you'd just invested without leverage.