投資上面咩係槓桿效用?

leverage, is just to invest by your money with a lever arm

e.g.

you have $100.
a stock cost $1/unit
you can then buy 100 units by your $100
if the stock increases 10% to $1.1/unit, you can get back $110
your investment return is 10% over that period

however, if you have leverage
you still have $100
someone can lend you $400 at a rate 5% over that investment period
you now get $500 in total
you can use it to buy 500 units of the stock at $1/unit
after the 10% increase of stock price, you can get back $550, rite?
the interest you have to pay is $20
so, the actual cash you have is $550 - $400 - $20 = $130
your investment return over that period is $130 / $100 = 30% (but not just 10%)

You can see, with a leverage, you can increase your investment return (gain / loss) by much

A very good example is investment in property market with 70% mortgage
or even higher if
you give 5% deposit and then re-sell the premises before you sign the formal contract, then your leverage is 95%. It can yield a extremely high investment return. If you just pay 5% and the property value increase 5% in that month, your investment return is 100% / month and 409500% effectively annually.

another example is invest by margin. Normally, you can get 50% margin now.

http://www.pfcf.com.tw/class/inpage3_1c.htm

有好多投資既用語解釋