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to lever

to lever

1 8.2
To use borrowed money to try to increase returns
  • verb
  • /ˈlɛvər/
  • Specialized
translation icon : apalancar
  • Investors often choose to lever their resources to maximize returns on their investments.

A common real world example of this effect is levered ETFs.

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Examples

  • A financial system that is highly levered, for example, purely with borrowed money, will crash when things turn down, as the need to liquidate large positions causes prices to fall, which feeds back on itself.

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  • So they can just lever up, lever up, lever up, go into these risk assets like stocks.

  • Then they can lever a tremendous amount and it makes complete perfect math sense.

  • Somewhat diabolically, the editor is trying to use the reader's own guilty conscience to lever them into accepting this comedy of errors.

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  • They were levered 40x!

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  • I think that "leverage" might be a better overarching blame category than the entire class of "derivatives," though some derivatives do permit one to make levered bets.

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  • By deciding to lever their assets, the company aimed to increase its profitability during the market upturn.

  • Many businesses lever borrowed funds to expand operations, hoping to gain higher profits from their investments.

Synonyms

to parlay
vsto lever
14 7.2

To use something you have to get more success

uses borrowed funds or resources specifically to amplify investment returns
to capitalize
vsto lever
  • Specialized
3 5.5

To give money to a business to help it grow

focuses on using borrowed money to increase returns rather than just supplying funds

Phrasal Verbs

Move a handle to make a machine start or stop

Compounds

1 3.6

A handle in a car you move to change gears

compound lever
  • Specialized
6.7

A system of two or more levers joined so force on one is passed and increased by the others

A device you move with your foot to control a machine

lever hang
  • Specialized
9.3

A position on gym rings where the body is held straight and horizontal

lever lock
  • Specialized
6.7

A device that keeps a door or safe closed until someone lifts the levers to the right heights

A small portable balance with a bar that turns on a point to weigh things

lever tumbler
  • Specialized
9.1

A flat metal piece inside a lever lock that a key lifts to open the lock

spark lever
  • Archaic
9.9

A small handle near the steering wheel for changing the engine timing

How Leveraged

to overleverage
  • Specialized
1 8.8
to lever
  • Specialized
1 8.2
to finance
277 3.3
to borrow
1.0

Surface Forms

lever infinitive
levered past
levered past participle
levering present participle
levers third person singular

Etymology

Lever in finance uses the same image from Latin levare, 'to raise'. To 'lever' an investment is to use borrowed money to 'raise' the possible gain, like using a physical lever to lift something heavier than you could alone.