You may lose more than you invested. Just as gains can be magnified, so can losses. If you buy stocks on margin and they lose value, you still have to repay the borrowed money plus interest. Investors expect to make a profit by investing in exchange-traded funds (ETFs) or by doing an IRA rollover to Gold. Generally, there are no gains or losses until you sell your shares on the ETF, but there are important exceptions that are discussed later.
In theory, you can lose more than you invest in leveraged ETFs. However, it is unlikely in short-term trading with leveraged ETFs due to the structure of these types of securities. Only compound losses on a position can lead to losing more than you invested. Exchange-traded funds (ETFs) are similar to mutual funds, except that they are traded intraday like stocks.
Although ETFs can be relatively inexpensive, investing in them comes with certain costs.
