SOLD REALITY
L
Trading

Leverage.

Using borrowed exposure so gains and losses move faster than the money posted as collateral.

PLAIN ENGLISH

What does Leverage mean?

Leverage lets a trader control a larger position than their collateral alone would support. It magnifies both upside and downside, which is why leveraged positions can be liquidated quickly when price moves against them.

IN THE WILD

How people use it

Perpetual futures, margin trading and some betting-style products.

EXAMPLE“The move was small, but the position was heavily leveraged.”
ALSO USED AS

leveraged

KEEP DIGGING

One word down.
198 more ways to sound terminally online.

Browse the dictionary →