Read? Understanding Debt, Risk and Leverage
There are few ways to play the Game of Leverage
1. Too Heavy (Too much capital upfront)
To invest in property, most retail investors are expected to leverage heavily i.e. they don't have much of a choice but to play the Game of Leverage in a big way.
2. Too Light (Little capital)
For small retail investors with little capital e.g. $2K; they like to own DBS stock but they can't afford to buy DBS at $14.X. They may have to use CFD to play the Game of Leverage to gain indirect exposure to DBS stock.
3. Overweight (The More The Merrier)
In the current low saving rate of less than 1%; it will be stupid to borrow at 2% to invest in relatively safe fixed income financial instrument getting 5-6% returns while keeping your surplus cash in the Bank earning ......
