This describes the amount of debt in your business, in relation to your equity. The more you use debt to finance your company, the more leveraged you are (borrowing other people's money to make money).

Making an investment by borrowing money to cover part of the purchase cost.

The practice of investing with borrowed money to increase potential profit. For example, if you invest $5,000 and earn a 20 percent return, your profit is $1,000. If you invest $5,000 and borrow another $5,000 for a total of $10,000, you earn $2,000 (minus interest costs). A word of caution: Remember, leverage works both ways. If your investment loses money, leverage can magnify your losses.

A financial mechanism used to increase available funds usually by issuing debt (typically bonds) or by guaranteeing or otherwise assuming liability for others' debt in an amount greater than cash balances.

the ability to control a larger amount of money with a smaller amount

Borrowing money to invest in hopes of achieving greater returns on the new securities. This simultaneously adds debt and builds assets.

Relates to long-term debt of the company's capital structure

Leverage is an investment technique in which you use a small amount of your own money to make an investment of much larger value. In that way, leverage gives you significant financial power. For example, if you borrow 90% of the cost of a home, you are using the leverage to buy a much more expensive property than you could have afforded by paying cash. And if you sell the property for more than you borrowed, the profit is entirely yours. Buying share on margin is a type of leveraging, as is buying a futures contract or an option. Leveraging can be very risky, however, if the investment doesn't perform as you anticipate. At the very least, you risk losing your own money and must repay any money you borrowed. And with some leveraged investments, you could be responsible for even larger losses if the value of the underlying product drops significantly.

Use of borrowing as a means of maximizing your investments while minimizing your own outlay of cash. In securities trading, a margin account gives you leverage.

A negotiating position of strength; something creditors may have, debt collectors never have, and consumers almost always have.

The use of financing to allow a small amount of cash to purchase a large property investment.

The use of borrowed funds in conjunction with owned money to amplify investment outcomes by facilitating larger position sizes than would be available simply using owned funds.

Use of debt to finance operation

(a) Enhancing return or value without increasing investment. For warrants and options contracts this means offering the prospect of high return for little or no investments, involving great risk (since a price change of the underlying asset may generate a larger change in option's value); (b) a measure of a firm's debt to equity, how much of the firm's assets are financed through debts (also known as gearing).

In the financial sense, making a given amount of money do more work than is normal for its “size,” in exactly the same way a properly applied lever can lift a very heavy weight. Getting “more bang for your buck.” The more leverage used, the more speculative is the investment. Buying stock on 50% margin is using more leverage than paying in full for the stock. Buying stock options is more leveraged than buying stock on margin. And then there's futures... welcome to hyperspace.

The amount of the owners' or stockholders' money relative to the money that lenders, suppliers and others have contributed to the firm. The ratio of owners' money to other peoples' money.

also known as gearing, leverage is the realization that a large return can be obtained from a relatively small outlay with risks attached.

Use of a small amount of money to purchase a more expensive property. Use of borrowed funds to increase purchasing power.

The use of a small amount of assets to control a greater amount of assets.

Also known as margin trading. A term used to in the relationship of actual equity versus controlling equity.

The management of debt to generate a higher return.

The use of borrowed funds to help finance a farm business. Higher levels of debt, relative to net worth, are generally considered riskier.

The ability to gain financial exposure in excess of the funds deposited to open the position, characteristic of risk margining on TradeSports.

A term for when you leverage your business by intentionally taking on debt(s) to expand the size or scope of your company.

The use of borrowed funds or debt to increase potential investment returns. The investment gain is magnified because it is not measured against the total investment – only against the portion that was not borrowed.

The ability to use a small amount of money to control a large trading position.

Borrowing money to purchase investments on margin. Leverage can increase an investor's return, and there are often tax advantages associated with borrowing to invest. Investors use this technique because investment gains or losses are measured against the non-borrowed portion, not the total investment.

The ratio of the amount represented by the Forex contract compared to the required security deposit (margin).

The practice of investing with borrowed money in the hopes of increasing potential profit.

Essentially, it allows an investor to establish a position in the marketplace by depositing funds that are less than the value of the contract. The use of borrowed assets by a business to enhance the return to the owner's equity.

The ratio of margin to the maximum position size. With a deposit of $5000 and a leverage of 50, a trader could enter a position with a face value of $250,000. Leveraging allows you to profit quickly, but lose money just as quickly.

A firm takes advantage of the sound market reputation of its common stock to sell bonds. The fixed capital thus obtained is used to improve company operations and earn back a greater return than the interest rate the company pays.

the use of debt to acquire assets, build operations and increase revenues. By using debt, a company is attempting to achieve results faster than if it only used its cash available from pre-leverage operations. The risk is that the increase in assets and revenues does not generate sufficient net income and cash flow to pay the interest costs of the debt.

The use of outside money (debt) in relation to the investment (equity) in the business.

The degree to which an investor or business is utilizing borrowed money. Also, what the debt/equity ratio measures. see also operating leverage, pyramiding, reverse leverage.

The use of a small amount of cash to control a large amount of property values.

An investment in one area gives an additional benefit in another.

Also called, gearing. How a company uses debt. It's the impact of borrowed funds on investment return. Many companies make a small investment to generate a larger rate of return through borrowing. High leverage means the owner has made a minor investment and the lender has made a major loan.

The amount borrowed in relationship to the amount of equity a company uses to buy its assets.

The amount of debt in relation to either equity capital or total capital.

Using long-term debt to secure funds for an organization. The phrase, " a leveraged balance sheet," refers to significant long-term debt on the balance sheet vis-a-vis equity and total assets.

investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)

supplement with leverage; "leverage the money that is already available"

this term means to borrow money for investment purposes. The amount of leverage is usually stated as a multiple/percentage of the initial amount being invested. Same as gearing

Using capital to enhance the rate of return. Buying stocks with borrowed money (on margin, as it is called) is an example. As leverage enhances potential return, so does it enhance the level of risk.

The use of borrowed capital to increase the potential net return in trading or investment.

Using borrowed funds to make purchases, thus increasing the user's purchasing power, potential rate of return, and risk of loss.

The use of borrowed money or options to increase your investments without spending much additional money. Leverage adds significant risk to a portfolio and magnifies losses as well as gains.

The additional money that a programme causes others to contribute.

The use of borrowed money in investing or business undertakings.

The use of borrowed funds at a profit. An investor's use of borrowed money to increase return on cash investment. Leverage is profitable only when the return on investment is higher than the cost of the borrowed money.

Using borrowed capital to increase investment returns.

The ability to use a small amount of money to attract other funds, including loans, grants and equity investments.

The use of borrowed funds to increase the amount invested in a particular position. Investors use leverage when they believe that the return from the position will exceed the cost of the borrowed funds. Hedge fund managers who target very small price discrepancies or spreads will often use leverage to enhance the returns from these discrepancies. This magnifies the risk of the overall strategy. It also gives the lender power over the disposition of the investment portfolio, either in the form of increased margin requirements or even forcing a partial or complete liquidation of the portfolio in the event of averse market movements.

Market makers allow greater leverage than do the equities, futures or options markets. Market makers' trading platforms are designed to effectively monitor and control risk exposure in real-time, with an extreme degree of precision. Traders can engage 10:1 leverage (or even higher), without risking a margin call. Leverage can work against you. This high degree of leverage can lead to large losses, as well as gains, if you do not implement a proper risk management strategy. That is why you are encouraged to use tight stops. Leverage of 100:1 is commonly available from online FX dealers, which substantially exceeds the common 2:1 margin offered by equity brokers. At 100:1, traders post $1000 margin for a $100,000 position, or 1%. Leverage is essential in the Forex market, because the average daily percentage move of a major currency is less than 1%. However, the average daily range, in 'pip' terms, far exceeds the range achievable in equities markets.

The capacity to borrow an amount greater than the equity in property. The larger the loan in relation to the equity, the greater the leverage.

Increasing the return on an investment through borrowing or special contract terms. Using borrowed funds to maximize the rate of return on investment. Keep in mind, however, that losses can mount very quickly if your investment starts losing money.

Refers either to the leverage achieved on the earnings power of the investor's own capital in the case of investments financed with borrowed capital or to the possibility of achieving higher returns with a comparatively low capital outlay using derivative instruments. The risks are, of course, correspondingly high.

Obtaining a higher return on borrowed money than the cost of borrowing it. A situation where the smallest amount of cash is invested to obtain the best yield, percentage wise.

The use of financial instruments or tactics to increase the potential return on an investment.

The use of borrowed money to make an investment (e.g., a home mortgage).

The use of borrowed money to increase purchasing power and, under ideal conditions, to increase the return on the investment.

The magnified return (positive or negative) that investors will derive from any subsequent change in the market value of the portfolio shares.

1. Financial leverage is the act of increasing the return on an investment by borrowing some of the funds at an interest rate less than your return on the project. 2. Operating leverage has the same objective, but you increase your return by increasing cheaper fixed costs. Leverage can be positive or negative. If the return on an investment is greater than the cost of borrowing, leverage is positive. If the return is less, leverage is negative.

Borrowing to enhance the amount of your investment, and hence your potential gain (or loss), without increasing the amount of capital committed.

The use of borrowed money or other financial instruments to potentially increase the returns of an investment.

A technique whereby borrowed funds are used in addition to investor capital to purchase securities. This technique has the effect of magnifying the gains or losses on the investments. "Buying on margin" is a typical form of leverage.

The US term for gearing. LIFFE: This is not a typographical error but the name of the futures market in London. It (nearly) stands for "London International Financial Futures and Options Exchange". See Futures.

Debt financing or anything that can similarly magnify the risk and reward of an investment.

The relationship of other people's money (debt) in relation to your own investment (equity) in your business. This is measured by the debt-to-worth ratio.

Also known as Gearing. Borrowing funds to increase the amount of capital available for investment. Managers use leverage when they believe that the return from the position will exceed the cost of the borrowed funds. Sometimes, managers use leverage to enable them to take on new positions without having to liquidate other positions. Leverage can effectively increase the potential for higher returns, but can also increase the risk for greater losses.

The degree to which an investor or fund is using borrowed money.

The use of borrowed money to finance an investment.

A leverage is where a fund or portfolio is over invested using derivatives, or the use of an asset is used as security for a borrowing. Also known as gearing.

Using borrowed funds in addition to invested equity in a financial undertaking.

The amount of "credit" you can get from your investment, i.e. 100:1 leverage is a 1% margin requirement.

The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments. For example, an option is said to have high leverage compared to the underlying stock because a given price change in the stock may result in a greater increase or decrease in the value of the option.

(1) the use of borrowed money to increase the return on a cash investment. For leverage to be profitable, the rate of return on the investment must be higher than the cost of the borrowed money. (2) the use of a relatively small amount of capital to control a large dollar amount of a commodity or cash instrument by buying on margin. In the futures market, the margin is a good faith performance bond. In the cash market, the margin is an actual down payment. (3) the effect on the earnings per share of the common stock of a company when large sums must be paid for bond interest or preferred stock dividends before earnings are paid to holders of common stock.... read full article

The relationship between the notional contract value and the margin required to trade. For example, if the notional amount traded (also referred to as "lot size" or "contract value") is $100,000 dollars and the required margin is $2,000, the trader can trade with 50 times leverage ($100,000/$2,000); or "50:1" leverage. Leverage is the inverse of the percentage margin requirement.

the value which is expressed as a multiple. The notional amount traded exceeds the margin required to trade by this multiple. In case a lot size/contract value (the same as the notional amount traded) is $100,000 dollars and the margin required is $2,000, you could trade with a 50 times leverage ($100,000/$2,000). There are different kinds of leverages – 1/25, 1/100, 1/200 used at the forex market.

Refers to margin trading or gearing. The use of credit or borrowed funds to increase ones buying power.

The ability to establish a large exposure from a relatively small outlay. Also known as “gearing.” There are inherent risks attached to such a practice.

A reference to the act of intentionally taking on debt to expand the size or scope of your company.

Maximizing the debt (thereby minimizing the equity) of a property..

The use of borrowed money to increase one's return on a cash investment. For leverage to be profitable, the rate of return on the investment must be higher than the cost of the money borrowed (interest plus amortization). Leverage has the potential to magnify losses.

Leverage is the realisation that a large return can be obtained from a relatively small outlay with risks attached. Leverage is also known as gearing

Also called margin. The ratio of the amount used in a transaction to the required security deposit.

The use of various financial instruments or borrowed capital to create exposures that are in excess of the amount of investable assets, to increase a potential return on the investment. Leverage, by definition, increases the risk.

Margin and use of option contracts are forms of leverage which allow investors to enhance their returns without adding to their investments.

1. The effect of the use of senior capital (bonds and preferred stocks) over junior capital (common stock) in capitalizations. 2. A measurement of a portfolio's exposure to market risk.

The use of another's money (usually a financial institution) for a proportion of the costs of purchasing or developing a real estate investment. When the return on the equity portion of the investment is higher than it would have been without leverage, positive leverage is said to exist. When the return on the equity portion of the investment is lower than it would have been without leverage, negative or reverse leverage is said to exist.

An Americanism for gearing where companies will use a limited asset base to generate substantial borrowings for speculative or business purposes. Money is borrowed to increase the amount invested to more than 100% of the fund's net asset value.

The relationship between the amount of money one needs to put up to own something and its underlying value determined the amount of leverage one has. High leverage increases the potential size of profits and losses.

The process of increasing funds available for trading by borrowing.

The ratio of debt to total assets.

Purchasing property with money belonging to someone else.

A company's use of debt, instead of its equity, to support its assets and grow.

The use of credit or borrowed funds in conjunction with a sum of money to increase the rate of return from an investment, such as buying securities on margin.

The use of borrowed funds to finance a portion of the cost of an investment.

Using someone else's money to purchase a property. Refers to the ability to use the investment as collateral for a loan.

The control of a larger sum of money with a smaller amount. By accepting the liability to purchase or deliver the total value of a futures contract, a smaller sum (margin) may be used as earnest money to guarantee performance. If prices move favorably, a large return on the margin can be earned from the leverage. Conversely, a loss can also be large, relative to the margin, due to the leverage.

The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

The level of private sector investment, which results from a project, is known as leverage

the degree to which the value of government expenditure on biodiversity conservation is supplemented by voluntary contributions in both kind and money.

The relationship between an owner's equity and total debt on a property. The higher the leverage, the higher the debt in relation to the value of the property.

Refers to the advantages that may accrue to a business through the use of debt obtained from third persons in lieu of contributed capital.

a) A synonym for gearing (eg. using derivative investments to over-invest a portfolio); or b) The use of an asset as security for a borrowing.

The use of financing to use a small amount of cash to make a large investment.

Use of debt financing to purchase an investment.

Using a small amount of cash, say a 10 or 20 percent down payment, to purchase a piece of property.

Gearing. The use of borrowed funds in order to supplement and investor's own money when acquiring an asset or the proportion of funding obtained by debt. The higher the leverage, the higher the use of debt.

The use of borrowed money to purchase property.

The use of borrowed money to make investments.

Doing more with less. In real estate, borrowing money from a financial lender to purchase a property is a form of leverage. You put down a small percentage of money, the bank loans you the rest, and you purchcase the entire property.

The relationship between interest-bearing debt and equity in a company (financial leverage) or the effect of fixed expense on after-tax earnings (operating leverage).

Amount of money put at risk by a derivative is much bigger than the down payment that was made when it was traded

The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as ‘gearing.

Leverage refers to exerting great influence with little effort. Buying a house allows you to leverage your cash in two ways. Suppose, for example, that you make a 20 percent down payment on a $100,000 house - thus investing $20,000. The first leverage is that you control a $100,000 property with $20,000. If your house appreciates to a value of $120,000, you've made a $20,000 profit on a $20,000 investment - a 100-percent return thanks to leveraging. However, leverage works both ways, so if your house depreciates. . . .

Use of debt financing in order to maximize a return on invested capital.

Monies borrowed to purchase real estate property.

Leverage is the use of debt financing to increase increase the returns of a company. An investor will want to be careful when leveraging his investments because if one of his stock falls, his loan's collateral will not be adequate. Leveraging is not possible in the Marketocracy competition

Term for gearing in the U.S., the ratio of a company's debts to its assets.

The use of borrowed money to increase investing power.

Another word for gearing (eg. using derivative investments to over-invest a portfolio)

Facility whereby a small margin deposit can control a much larger total contract value

The use of borrowed capital to increase earnings.

Using debt in order to control more assets. To Top

In investments, the attainment of greater percentage profit and risk potential. A call holder has leverage with respect to a stock holder-the former will have greater percentage profits and losses than the latter, for the same movement in the underlying stock.

The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.

Controlling a large amount of stocks with a small amount of the investor’s money, through either derivatives or loaned money.

The use of a small investment to generate a greater rate of return through borrowed funds. The most common form of leverage is a homeowner using a small down payment to purchase a house.

The compounding of risks; frequently the ratio of debt to equity.

The degree to which an investor or business is utilizing borrowed money. The amount, expressed as a multiple, by which the notional amount traded exceeds the margin required to trade. For example, if the notional amount traded is $100,000 dollars and the required margin is $2000, the trader can trade with 50 times leverage ($100,000/$2000). For investors, leverage means buying on margin to enhance return on value without increasing investment. Leveraged investing can be extremely risky because you can lose not only your money, but the money you borrowed as well.

The use of borrowing to increase the ability of a business to conduct its operations.

Synonymous with debt. Borrowings are referred to as leverage when used with equity. With a small amount of equity an a large amount of debt, one can leverage a business on basis of its assets.

The amount, expressed as a multiple, by which the notional amount traded exceeds the margin required to trade. For example, if the notional amount traded (also referred to as "lot size" or "contract value") is $100,000 dollars and the required margin is $2,000, the trader can trade with 50 times leverage ($100,000/$2,000).

Using someone else's money for the purchase of property. Liability Insurance - Insurance that protects property owners against claims that alleges negligence or inappropriate action that resulted in bodily injury or property damage to another party.

The ratio by which debt exceeds equity. The use of debt instead of equity to support assets and growth.

The effect on a company when the company has bonds, preferred stock, or both outstanding. Example: If the earnings of a company with 1,000,000 common shares increases from $1,000,000 to $1,500,000 - earnings per share would go up from $1 to $1.50, or an increase of 50 percent. But if earnings of a company that had to pay $500,000 in bond interest increased that much - earnings per common share would jump from 50 cents to $1 a share, or 100 percent.

The use of a small quantity of assets to control a greater quantity of assets; for example, in futures, relatively little capital, usually 5% to 15% of the total value of the contract, gives the trader the benefit of price movement on the full contract. The downside is that if the price moves adversely, the leverage will work against the trader.

Company debt expressed as a percentage of equity capital. High leverage means that debts are high in relation to assets. The equivalent UK term is gearing.

The use of borrowed funds; investors use leverage by investing a minimal amount and financing the balance. This is common practice in the stock market (via the use of margin accounts) and even more so in real estate. Some investment analysts identify three possible methods to invest: equity (ownership position such as stocks), debt (lending money through notes or bonds), and leverage (using a small amount of money to control a larger investment base).

The relationship between debt and equity. A company is considered highly leveraged if its levels of debt are high compared to its equity.

(financial ratio analysis based) The ratio of debt to equity in a transaction in a business.

This is where you use someone else's money in order to purchase property.

Use of borrowed funds to increase purchasing power and, ideally, to increase the profitability of an investment.

A maximum level of debt to either equity or cash flow. The debt to cash flow level is far more common.

The practice of borrowing to add to an investment position when one believes that the return from the position will exceed the cost of borrowed funds. Both institutional and individual investors can use leverage. It is not uncommon to see hedge fund managers utilize leverage in order to increase returns. Leverage can have the effect of magnifying returns as well as losses.

A company is leveraged when it has a high ratio of debt to equity. If the company can use the extra debt to expand and generate more than enough additional revenue to cover the higher interest costs, then the leverage is beneficial to the current shareholders, that is, each share has been leveraged.

Using a small asset to purchase a larger asset; using “OPM” - other people’s money! Leverage allows a buyer’s down payment to go further. (Example: Instead of using $50,000 down on a $100,000 property, the buyer could use $10,000 down on five properties of $100,000).

Usually means to borrow money. Known in Britain as 'gearing'. It is normally stated as a multiple or percentage, three times is 300% gearing. Can also be achieved by buying securities on margin or by using derivatives such as futures and options.

The use of borrowed money to increase the funds available for investment, used in order to achieve a greater rate of return.

investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money.

The amount of debt in relation to equity in a firm's capital structure - measured by the debt-to-equity ratio. The more long-term debt there is, the greater the financial leverage. Shareholders benefit from financial leverage to the extent that return on the borrowed money exceeds the interest costs and the market value of their shares rises.

Debt in relation to equity; a highly-leveraged company is one with a high proportion of long-term debt.

See Gearing.

"Leverage" commonly applies to the amount of a businesses' Debt compared to intangible Net Worth or Stockholder's Equity.

A financial condition brought about by the assumption of a high percentage of debt in relation to the equity in a corporation's capital structure.

If you think you really know where the market is going, and that it is a sure thing, then obviously you want to trade. It may be that you do not have enough cash to buy enough shares to make a decent profit, so it seems a waste of time; however, with the money you do have you could buy options - these usually cost only a small percentage of the equivalent value in shares, so you can use these derivatives, to effectively multiply - i.e. leverage - the value of your stake.

Using long-term debt to secure funds for an organization. In the social investment world, often refers to financial participation by other private, public or individual sources.

The financial advantage of an investment that controls property of greater value than the cash invested. Leverage is usually achieved through the use of borrowed money.

Controlling a large asset with a relatively small amount of cash. In real estate, $25,000 down payment (or less) can be used to purchase (control) a $100,000 home, for example.

A synonym for gearing (e.g. using derivative investments to over-invest a portfolio).

The use of borrowed funds to buy securities. Otherwise, the purchase of securities, such as futures or options, that only represent a portion of the value of an underlying security. Use of leverage can be profitable even with seemingly small changes in the price of a security, but losses can rise quickly when prices move in the wrong direction.

Used in the context of general equities. For corporations, property of rising or falling at a proportionally greater amount than comparable investments. For example, an option is said to have high leverage relative to the underlying stock because a price change in the stock may result in a relatively large increase or decrease in the value of the option. The use of debt financing.

Borrowing money for investment purposes.

The use of borrowed funds to purchase investment property with the anticipation that the property acquired will increase in return so that the investor will realize a profit not only on his own investment, but also on the borrowed funds; the employment of a smaller investment to generate a larger rate of return through borrowing.

The use of borrowed funds to finance an investment and to magnify the rate of return

1.Borrowing funds to invest in securities, thereby increasing the potential return or loss on the funds actually placed at risk, or 2. increasing exposure to an index or other factor by making the security return dependent upon a multiple of the change in the index or other factor.

Involves borrowing money to invest in the hopes of earning a greater rate of return than the rate at which the additional monies were borrowed.

The use of credit to finance a portion of the costs of purchasing or developing a real estate investment. Positive leverage occurs when the interest rate is lower than the capitalization rate or projected internal rate of return. Negative leverage occurs when the current return on equity is diminished by the employment of debt.

The use of borrowed funds in the purchase of an investment. If the addition of the mortgage increases the return to the equity, (equity dividend rate or equity yield rate), the addition of the mortgage has resulted in positive leverage.

The amount of debt in a company's financial structure. May be expressed as a percentage of the total financing or as a ratio of debt to equity.

The degree to which an investor can used current equity to increase the amount of debt financing available to them. The higher the level of equity, the lower the leverage and equally the higher the level of debt, the higher the leverage. High leverage allows very high gains from small price movements, and is one of the fundamental aspects of CFD trading.

Measures the firm's use of borrowed funds versus those funds provided by the shareholders or owners (equity).

using an asset as security for borrowing. Can also mean gearing

The ratio of debt to equity to finance a company's operations and new projects. A company is highly leveraged if it is using a large proportion of debt (i.e., bonds or loans) versus equity to finance its operations.

The use of borrowed money to increase the rate of return on an investment. Leverage is most commonly used in the purchase of a house, where a relatively small downpayment is made, and the remainder of the purchase price is paid with borrowed money secured by a mortgage. It should be noted that in the case of unsuccessful investments, leverage has the effect of magnifying losses.

The use of borrowed funds to finance the purchase of an asset; the use of another's money to make more money.

The use of borrowed money in investing, in the hope of increased earnings. For example, a corporation or individual may borrow money at 5 percent, invest it and make 10 percent on the investment. However, leveraging can also multiply losses if an investor loses money on an investment.

The potential to increase financial gains as a percentage of an investment. In futures trading, one speaks of the leverage afforded by margin deposits-often representing only 5 to 10 percent of the market value of the futures contract-made as performance bonds. Leverage gives a trader the benefit of price movement on the full contract.

a strategy involving a small cash outlay for a securities transaction, with borrowed funds making up the remainder; increases both the risk and the potential for gain; buying securities on margin is one example

The ability to control large amounts of a financial asset with a comparatively small amount of capital.

A ratio reflecting the extent to which debt is used instead of equity in the capital structure of a company. See debt-equity ratio.

The use of borrowed money (financing) to make an investment; i.e., the use of borrowed money to the maximum extent possible.

The ability to use a small amount of funds to attract financing in a real-estate development from loans, grants and equity investments.

The use of financing or other people's money to control large pieces of real property with a small amount of invested capital.

The ability to control large dollar amounts of a security with a comparatively small amount of capital.

The use of a small amount of cash and a large loan to buy something.

The effect of fixed charges such as debt interest or preferred dividends on per-share earnings of common stock. Increases or decreases in income before fixed charges result in magnified percentage increases or decreases in earnings per common share. Leverage also applies to seeking magnified percentage returns on an investment by using borrowed funds, margin accounts or buying securities which require payment of only a fraction of the underlying security's value, such as rights, warrants or options.

The use of borrowed funds to make an investment in real properties in the hope of realizing a profit in addition to necessary to pay for the borrowed funds.

Possibility to purchase shares and other types of investment product in an amount higher than the invested capital.

Leverage (or gearing) is using given resources in such a way that the potential positive or negative outcome is magnified. In finance, this generally refers to borrowing. If the firm's return on assets (ROA) is higher than the interest on the loan, then its return on equity (ROE) will be higher than if it did not borrow.

The magnification of gains and losses in earnings resulting from the use of fixed-cost financing.

The power of positioning assets for maximum advantage.

The mechanical advantage gained by using a pivot to concentrate a force.

the mechanical advantage gained by being in a position to use a lever

strategic advantage; power to act effectively; "relatively small groups can sometimes exert immense political leverage"

the principle of making dollars work harder; this increases the percentage of gains, but also the percentage of losses

Taking advantage of volume-buying where the County Council has high expenditure on similar goods, works or services or with a particular supplier / contractor.

Means of achieving a purpose or goal. To take advantage of a specific situation.

Leverage is a factor by which lever multiplies a force - it is therefore related to mechanical advantage. The useful work done is the energy applied, which is force times distance. Therefore a small force applied over a long distance is the same amount of work as a large force applied over a small distance.

The portion of translated material from a previous version that can be reused. Leverage is usually expressed as a percentage. For the specific case where CAT tools are used, leveraging is the process of searching through a translation memory for 100% and fuzzy matches, and then pasting the previously translated segments into the current document.

A method of grantmaking practiced by some foundations and individual donors. Leverage occurs when a small amount of money is given with the express purpose of attracting funding from other sources or of providing the organization with the tools it needs to raise other kinds of funds; sometimes known as the "multiplier effect."

Using one grant to lever in funds from other sources to increase the value of the original grant. Many government grant programmes require applicants to show how much extra grant they think they will be able to lever in if their application is successful. See also match funding.

In this case leverage means that the investor only funds part of the amount traded.