# Leverage

*Borrowing & Credit — Finicade finance glossary*

Using borrowed money to increase the size of a position — magnifying both gains and losses. A little leverage can boost returns; too much turns a small adverse move into a wipeout, which is why it sits behind most financial blow-ups.

**Related terms:** [Margin](https://finicade.com/glossary/margin), [Debt](https://finicade.com/glossary/debt), [Bank Leverage](https://finicade.com/glossary/bank-leverage)

**Taught in:** Charter Climb — Cost of Capital & Structure

Source: https://finicade.com/glossary/leverage