: You get liquidity without triggering capital gains taxes because you haven't sold the assets.
: You borrow money from your broker to buy more securities than your cash balance allows. loans stock
: If the market drops, you still owe the full loan amount plus interest, potentially losing more than your initial investment. Key Financial Instruments : You get liquidity without triggering capital gains
: These loans often have lower interest rates than personal loans because they are secured by your investments. loans stock
This involves using debt to increase your buying power, which can magnify both gains and losses.