What are the Benefits?
Borrow against your home equity
You have the option to either refinance your current mortgage or acquire a new one with the expectation that the investment will not only offset the loan and associated borrowing expenses but also yield additional earnings. However, the disadvantage is that you may be jeopardizing your equity, and potentially your property, by assuming this risk.
Buy on margin
Margin buying involves taking a loan from your investment firm to finance a portion of your investments. However, this strategy carries substantial risk since there is a possibility of losing more money than your initial investment.
Short sell stocks
Short-selling a stock involves borrowing shares from your investment firm because you anticipate a decline in the stock's value. Nevertheless, this approach carries significant risk as you may incur losses exceeding your initial investment if the stock price surges.
