This is going to sound stupid, but could you (or whoever) explain what leverage ... | Hacker News

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		maximilian on March 30, 2008 \| parent \| context \| favorite \| on: Wall Street Stole My Smart Friends This is going to sound stupid, but could you (or whoever) explain what leverage means? I'm plenty good at math but i'm a super newbie at the financial sector lingo.

kf on March 30, 2008 [–]

5:1 leverage means trading with 5x borrowed money and 1x real money. This drastically multiplies potential gains, losses, and overall risk.

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