A. There are many ways you can achieve leverage when trade stocks. Here is a list with increasing order of leverage:
1. Leveraged ETFs
Leveraged ETFs can give you 2x, 3x, or even even higher multiples of the returns on the tracked indexes.
2. Options on Stocks
Some people believe options have lower risks, especially if you just buy calls or puts because your dollar at risk is limited at whatever you put in. However, if your bet is wrong, you could lose 100% of your investment, that's maximum risk!
3. Options on leveraged ETFs
With the underlying instruments already leveraged, options on leveraged ETFs could give you the ultimate leverage you want to achieve. However, please remember, while it's possible for any positive small swing of the underlying trading vehicle you could be richly rewarded, any negative small swing could easily wipe you out as well!