Questions tagged [reasons to avoid leverage]

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Lucia Lucia Thu Jun 06 2024 | 6 answers 1334

Why you should avoid leverage?

Why should we avoid leverage? It seems like a great way to increase profits, but I've heard it can be risky. Could you explain why it's often advisable to steer clear of leverage in financial investments? What are the potential downsides that investors might overlook when considering leveraging their positions? And are there any scenarios where using leverage might actually be beneficial? I'd like to understand the risks and rewards more clearly so I can make informed decisions about my financial portfolio.

Why you should avoid leverage?

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