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Leverage is the use of borrowed funds or debt to amplify potential returns on an investment, allowing you to control a larger asset with less of your own capital, but it also magnifies potential losses. In finance, it's like using a small force (your money) to move a heavy object (a big investment) with a lever, enabling greater outcomes, both positive and negative, than you could achieve with just your own funds#financefocused #wallstreet #invest #stocks #Leverage #leveragedebt #federalreserve
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Leverage is the use of borrowed funds or debt to amplify potential returns on an investment, allowing you to control a larger asset with less of your own capital, but it also magnifies potential losses. In finance, it's like using a small force (your money) to move a heavy object (a big investment) with a lever, enabling greater outcomes, both positive and negative, than you could achieve with just your own funds#financefocused #wallstreet #invest #stocks #federalreserve #FED
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