i am reading some flash cards and among other advantages it mentions "ability to gear up investment returns". what does this mean? thanks
I think this depends on the context or the asset we are talking about, it might mean: - an ability to borrow money and invest it in order to increase investment returns eg a fund manager of an investment trust may be able to do this - in the context of a derivative such as a future - increase your exposure to the underlying asset beyond the level you could achieve if you bought the asset directly, so potentially increasing your investment returns. Eg you can do this with futures because you only need to have enough money to meet the margin requirements.
