Discussion in 'Finance & Banking' started by Ema24, 6th Sep, 2013.
I know what leverage is but unsure how double and triple leverage work?
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.
That's probably the best description I've heard thanks Greg!
Separate names with a comma.