That is the basic nature of trading. Traders being leveraged; does not mean that they borrow but that they trade on margin. In fact, they take positions that are a multiple of their margins put in. Let us provide a clarification here. There are many who borrow to invest in the long run. If an investor feels that the returns on a stock can far exceed the cost of debt then it makes sense to borrow money and invest in equities. Leverage in trading is a slightly different ball game altogether. Your position is based on a multiple of your affordability. Your capital protection is not determined by the size of your order but by the width of your stop loss. Whether you are trading equities, futures or options, the element of leverage in trading is a key component that distinguishes it from investing.