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Leverage - Definition Definition: The use of various instruments to increase one's rate of return. In regards to business, leverage refers to using heavy financing for various activities. TeenAnalyst Advice:
Most people think of options and futures as a way to leverage your
money. The idea is that you essentially borrow money to increase
your investing power. In futures, a person can buy $30,000
worth of corn for only $3,000 of their own money. If the corn
goes up 10%, they will make $3,000 (a 100% return).
This is one example.
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