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What are multiple levels of leverage? i.e. double and triple leverage?

Discussion in 'Finance & Banking' started by Ema24, 6th Sep, 2013.

  1. Ema24

    Ema24 Member

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    31st Aug, 2011
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    Melbourne, VIC
    I know what leverage is but unsure how double and triple leverage work?
     
  2. GregR

    GregR Reid Consultants

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    13th Jul, 2009
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    Berwick Vic
    I would envisage it would be a case similar to what Storm Financial investors experienced.
    They raised loans against their properties, used it to buy into the share market/managed funds and at the same time used margin loans to further increase their assets holdings secured against those shares.

    In that way the original funds are debt raised and then with the assets purchased, raised further debt.

    I am not sure I have ever seen a formal definition.
    Greg
     
  3. Blueeye

    Blueeye Active Member

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    Sydney
    That's probably the best description I've heard thanks Greg!