Leverage
Definition
The use of borrowed capital to increase position size and potential returns (and losses). Expressed as a ratio (e.g., 50:1).
Example
100:1 leverage allows control of $100,000 with $1,000 margin. Carry Trade Category: Forex Definition: A strategy of borrowing in a low-interest-rate currency to invest in a higher-interest-rate currency, profiting from the i
Related Terms
Frequently Asked Question
What is Leverage in trading?
The use of borrowed capital to increase position size and potential returns (and losses). Expressed as a ratio (e.g., 50:1).
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.
