What Is Leverage?
Definition and plain-English explanation of "Leverage"
Leverage involves using borrowed money to increase the size of a trading position. For example, 10:1 leverage means you can control $10,000 worth of stock with $1,000 of your own money. Leverage amplifies both gains and losses — a 10% move in your favour doubles your money, but a 10% move against you wipes you out entirely. Leverage is extremely risky for beginners.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.