What is the term for the amount of capital borrowed to increase the potential return on an investment?
Welcome!
This community is for professionals and enthusiasts of our products and services.
Share and discuss the best content and new marketing ideas, build your professional profile and become a better marketer together.
This question has been flagged
2
Replies
41
Views
The term for the amount of capital borrowed to increase the potential return on an investment is "leverage."
The term for borrowed capital used to enhance investment returns is "leverage." It allows traders to control larger positions than their own capital would permit, amplifying both potential profits and risks. Proper use of leverage is essential for effective risk management in trading.