Leverage
A ratio that lets you control a position larger than your own capital. It amplifies both gains and losses.
Risk
The question opens as a draft. You decide whether to send it.
What about “Leverage” in an example?
The question opens as a draft. You decide whether to send it.
Help me understand “Leverage” with a simple hypothetical example. Explain what it means, how it is used and a common misunderstanding to avoid. Ask me if context is missing.