Trading

Leverage

Purchasing a security with the option to sell it before its maturity with capital profit purposes, interest generating and favorable conditions in the price-cost relationship.  The principle is based on purchasing the security when is cheap and sell it when its price has increased.

This figure permits multiplying share when purchasing securities, looking for financing through Stock Exchange betting on an expected behavior of some value, generally under the figure of Re-purchase with seller position as of today. This means that security is purchased and it is used as guarantee of a re-purchase operation letting investor request a loan to the market in a short-term operation, only contributing with a cash guarantee percentage.  With cash contribution and money obtained from market, placing security as guarantee, broker settles the security purchase object of the re-purchase.

It is important to consider inherent risks to such kind of operations since they are based on a specific behavior of a security price within the Stock Exchange and positions must be previously studied.