Meaning of leverage | Babel Free

Definitions

1. A force compounded by means of a lever rotating around a pivot.
   uncountable, usually
2. Any influence which is compounded or used to gain an advantage.
   broadly, uncountable, usually
3. The use of borrowed funds with a contractually determined return to increase the ability to invest and earn an expected higher return, but usually at high risk.
   uncountable, usually
4. The debt-to-equity ratio.
   uncountable, usually
5. The ability to earn very high returns when operating at high-capacity utilization of a facility.
   uncountable, usually
6. The distance of between an independent observation and other observations.
   uncountable, usually

Equivalents

Examples

“A crowbar uses leverage to pry nails out of wood.”

“In order to proportion the braking force to the weight carried by a wheel - a matter of special importance in the braking of wagons - variable leverage systems are now being introduced in which the end of one axle spring is linked to a control spring in the change-over valve, so automatically varying the leverage exerted by the brake-rod according to whether the wagon is full or empty.”

“Try using competitors’ prices for leverage in the negotiation.”

“The former Forest man, who passed a late fitness test, appeared to use Guy Moussi for leverage before nodding in David Fox's free-kick at the far post - his 22nd goal of the season.”

“Leverage is great until something goes wrong with your investments and you still have to pay your debts.”

“Online margin trading is usually based on leverage, where the brokerage effectively lets you borrow more money than you have deposited as collateral.”

“Both exchanges offer crypto derivatives, which are bets on future fluctuations in cryptocurrency prices. They also offer extreme leverage — up to 125 times on Binance. That means a $1,000 down payment can be turned into a $125,000 gamble.”

“S.E.C. rules cap E.T.F.s from offering more than two times leverage. The nine fund managers who received a letter from the S.E.C. sought to introduce products that offered three and, in some cases, five times leverage.”

“In such cases where there is a multiple capital structure the factor known as leverage comes into play.”

“Their variable-cost-reducing investments have dramatically increased their leverage.”

CEFR level