What is leveraging? what is it used for?

Question

that might be a stupid question, but i really don't get it. any help would be greatly appreciated- thanks! :D

Answer 1

use a little get a lot if u win, and vice versa. Business version of roulette where you buy a security with essentially, a down payment. You may then trade and if price goes up and u sell you make a profit and pay the original buy with the profits of the sale. After the broker fee. Beware.

Answer 2

Assuming you are refering to financial terms leveraging is usually borrowing. It can also be using options in the stock market to control a greater portion of the stock without actually having to buy it.

If a person has borrowed heavily to invest he is said to be highly leveraged. There are a few other definitions but these are the main two.

Hope this helps.  Jackson.