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What is Leverage?

Basics

레버리지

A way of trading an amount larger than one's own capital. Not only gains but also losses are multiplied by the same ratio, and above all, the price range that can be endured before liquidation narrows in inverse proportion to the multiple. A higher multiple can reach forced liquidation even within normal fluctuations, so leverage should be understood not as a way to control profit but as something that narrows the margin for survival.

Leverageown fundssize enlarged by borrowinggains and losses grow by the same multiple

Lessons using this term (with diagrams)

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Leverage meaning — Trading glossary | MarketSurfer