[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:leverage":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fleverage.md","Leverage",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-leverage","Understanding Leverage",[16,17,18],"p",{},"Leverage amplifies results. With 2:1 leverage, a 10% gain on the investment becomes a 20% gain on your own money, before borrowing costs, and a 10% loss becomes a 20% loss.",[16,20,21],{},"Companies use leverage too, by funding operations with debt. High leverage raises the risk of large losses or default when things go wrong.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"trading","Using borrowed money or derivatives to increase the size of an investment.","md",[],{},true,"\u002Fterms\u002Fleverage",[35,36,37],"margin","options","futures",{"title":6,"description":28},"terms\u002Fleverage",[41,42,43],"Leverage multiplies both gains and losses.","Borrowing costs reduce leveraged returns.","Too much leverage can wipe out an investment.","9-QSel_Z8_Jt2R-o_6UFj7dY7egULy-ddCR94aQMZ_U",[46,50,54],{"title":47,"description":48,"path":49},"Futures Contract","A standardized agreement to buy or sell an asset at a set price on a future date.","\u002Fterms\u002Ffutures",{"title":51,"description":52,"path":53},"Buying on Margin","Borrowing money from a broker to buy securities, using your investments as collateral.","\u002Fterms\u002Fmargin",{"title":55,"description":56,"path":57},"Options","Contracts that give the right, but not the obligation, to buy or sell an asset at a set price before a set date.","\u002Fterms\u002Foptions",1793374005327]