Suppose me and my friend invest in the same stock but he has 10% more than me. I want to have the same amount as him, but I have no money to buy 10% more, so I'm gonna leverage my position to profit more % than him and reach him. My question is: how do I calculate the minimum profit required to achieve it given a specific level of leveraging?
For example, if I have 100 shares at 1 dollar each, my friend has 110 shares. I leverage at 2,1x, so I borrow 110 dollars from the broker and operate at 210. If the stock grows 10%, I'll profit 21 dollars (10% of 210) and my friend will profit 11 (10% of 110). Now I pay the 110 of the broker and take my 21 profit and buy more 10 shares at 1,1. So, for a given leveraging (2,1x) I need 10% of profit to reach my friend. But what if I leverage at 2x, 3x, 1,5x etc?