Intermediate
Leverage
Also: leveraged
Borrowing to make a bigger bet than your own money allows, which magnifies gains and losses.
With 10× leverage, a 10% move in your favour doubles your money, and a 10% move against you can wipe out your whole stake. Leveraged positions are regularly liquidatedLiquidation The forced sale of a borrower's collateral when its value falls too far relative to the loan. during volatile moves.