The main question to ask yourself is are you using your capital the best way possible? In many cases your brokerage is giving you access to tools and methods to make better use of that capital. They will not tell you all of these methods, which one is best, or hold your hand through the process, unless you pay them.
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### Capital efficiency example
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Let's say you wanted to invest in the S&P 500 in a buy and hold fashion. The following are some examples and costs associated:
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1. 50 shares of SPY @ $590. This might cost $30k, give you $30k exposure in SPY, and use no leverage.
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1. 1 90-delta deep in the money LEAPS SPY call option. This might cost $19k, give you $60k exposure in SPY, and use 2-3x leverage.
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1. 1 synthetic LEAPS in SPY (long call option, short put option). This might cost $2k, give you $60k exposure in SPY, and use 30x leverage.
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1. 1 /MES future. This might cost $2k, give you $30k exposure in SPY, and use 15x leverage.
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In all cases but the first, you are paying less to have a higher exposure in the same market. Each as a different risk profile.
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## Leverage
Adding leverage increases your risk, but increased risk is one way to possibly gain better returns. There are many ways to gain leverage, from using loans, to options, to futures. I'll explain how to use all of these methods.