Leverage
Leverage (or leveraging) is the process of using borrowed money to increase the size of, and potential returns on, an investment.
The idea behind leveraging is that your future returns will be greater than the amount it costs to service the money borrowed.
Leveraging can be applied in different ways, depending on the type of complex financial instrument being invested in. The risky nature of leveraging means you could either lose all your money quickly if an investment performs poorly, and you may even lose more than you originally invested.