Definition: Leverage | Tackle Trading: The #1 rated trading education platform

Leverage

Leverage, also known as Financial Leverage, refers to the use of debt, i.e. borrowed money, to acquire assets and increase the potential return of a specific investment.

Leverage also refers to the amount of debt a company uses to finance assets purchasing programs.
In trading, the most common usages of leverage are:

  1. Through a margin account.
  2. Through options trading
  3. Through futures contracts.
  4. Though leveraged ETFs.
Glossary - Leverage examples

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