PLAIN ENGLISH
What does Leverage mean?
Leverage lets a trader control a larger position than their collateral alone would support. It magnifies both upside and downside, which is why leveraged positions can be liquidated quickly when price moves against them.
IN THE WILD
How people use it
Perpetual futures, margin trading and some betting-style products.
EXAMPLE“The move was small, but the position was heavily leveraged.”
ALSO USED AS
leveraged