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Last updated: May 2026 · Charges and offers verified against official broker pages where noted.
Leverage means using borrowed funds or margin to increase the size of an investment exposure. Because the position is larger than the cash you contribute, your gains can increase—but so can your losses.
In investing, leverage can appear in different ways: margin trading, certain derivatives usage, or debt used by businesses to finance assets. The key point is that leverage amplifies the impact of price movements.
Common risks include higher volatility, interest/carry costs, and forced exits (for example, if margin requirements aren’t met). Even a trade that looks reasonable can become risky if the market moves against you quickly.
If you consider leveraged exposure, treat it as a high-variance strategy: understand maintenance margin rules, define an exit plan, and stress-test worst-case scenarios. Confirm the exact product terms and suitability in the broker/app before using it.
Key takeaway
Understanding leverage helps you read markets and broker marketing more clearly — it does not replace a financial plan or professional advice.
