What is leverage?
Last updated: 12 August 2026
Leverage is a strategy in which an investor can multiply his/her buying power to invest in certain derivative financial products by opening a position with a larger exposure to the market with a smaller amount of invested capital.
Leverage increases the potential return of an investment but it can also be very risky because it can magnify losses.
Was this article helpful?
Still need help?
We're happy to assist you, whenever you need us. Choose your preferred method of contact.
Related articles
trading
Are the stocks offered by etoro real?
trading/instruments
Can I buy etoro stock on etoro?
trading
Can I change the currency of my etoro account?
trading
Can I change the leverage in an open position?
trading
Can I close all my trades at the same time?
trading