Meaning of "Leverage"
This is an investment strategy that uses borrowed capital (such as loans) rather than one's own capital to amplify the scale of profits (or losses).
"He used leverage to aim for greater returns with the same amount of capital, but as volatility increased, his losses grew as well."
Related slang words
Block dealThis refers to a type of block trading in which institutions buy or sell large quantities of shares at once before the market opens or after it closes in order to avoid sharp fluctuations in market prices.Margin callThis refers to a notice issued by a securities firm requiring the customer to provide additional collateral if the margin ratio for margin or on-margin trading falls below the required level due to factors such as a decline in stock prices (or the risk of forced liquidation resulting from such a situation).Pre-marketA condition or trading method that allows investors to buy and sell stocks in a pre-market session operated by the exchange before regular trading hours begin.JongtobangA term referring to stock discussion forums on portals such as Naver Finance, denoting a space where investors’ joys, sorrows, and the highs and lows of their emotions converge, along with their overheated sentimentMaterials, Parts, and EquipmentA stock market slang term referring collectively to the materials, components, and equipment companies that determine the competitiveness of the semiconductor industry, emphasizing that this ecosystem dictates performance and productivityShort sellingThis is an investment strategy in which an investor, anticipating a decline in stock prices, borrows shares they do not actually own to sell them first, and then buys them back later at a lower price to return them and profit from the price difference.Money TreeThis is a nickname used to describe individuals (or their strategies) who generate profits by investing in disruptive innovation companies, likening them to entities that attach "money" to a "tree" to make money and help it grow.BTFDThis is a new investment term that means "buy more as prices fall," advising investors not to panic when they see a sharp drop in stock prices.