What is leverage that everyone often talks about?

You only have 10,000 yuan, which is too little. You want to invest in stocks and Bitcoin, but it is not enough. What should you do? Don't worry, I am a brokerage, I will lend you 90,000 yuan. You use 10,000 yuan of principal to invest in 100,000 yuan of stocks and Bitcoin. This is leverage, which is 10 times financial leverage.

So why does the brokerage lend you 90,000 yuan? Is the brokerage a philanthropist? Of course not. The brokerage lends you money with requirements.

You have 10,000 yuan of principal, and you use the 90,000 yuan borrowed from the brokerage to invest in stocks. If you are lucky, the stock will rise and you will make money.

The question is, have you ever thought about how big the risk is?

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