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leverage
This term describes the strategic use of a small force or resource to produce a disproportionately large effect. In a social or political sense, it refers to the tactical advantage one party holds over another, creating a power imbalance that can be exploited to force a specific concession. In financial contexts, the word carries a dual nature of risk and reward. While it suggests the ability to amplify profits through debt, it simultaneously implies a precarious vulnerability where small market shifts can lead to catastrophic losses.
Meanings
The power to influence a person or situation to achieve a desired outcome.
"The union has significant leverage in the negotiations because the company cannot afford a strike."
The mechanical advantage gained by using a lever to move a heavy load.
"The long handle of the crowbar provides the leverage needed to lift the heavy stone."
The use of borrowed funds to increase the potential return on an investment.
"High leverage can amplify gains in a bull market but can lead to total loss if prices drop."