Leverage
Borrowed exposure that multiplies both gains and losses relative to your posted margin.
Leverage lets you control a position larger than your account balance. At 5× leverage, a 1% move in the asset becomes a 5% move in your position. The multiplier cuts both ways: it amplifies profit and loss equally.
Leverage does not, by itself, increase risk — position size and stop placement do. Used with a defined stop and conservative sizing, modest leverage is a capital-efficiency tool. Used to maximize exposure, it is the fastest route to liquidation.
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