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Glite Dictionary
leveraging

leveraging

7.7
Using borrowed money to make bigger profits and raise risk
  • noun
  • /ˈlɛvərɪdʒɪŋ/
  • Specialized
translation icon : apalancamiento
  • Many real estate investors focus on leveraging to buy properties with minimal cash upfront while maximizing their returns.

But there is a very severe risk during times of low rates over leveraging.

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Examples

  • The Importance of Leveraging

    Academic text (2008)

  • HC recently sat down to coffee with Neal Schaffer, author of Windmill Networking: Understanding, Leveraging &;

    Blog text (12)

  • LEVERAGING KNOWLEDGE

    Academic text (1996)

  • Investors often discuss the risks and rewards involved in leveraging their capital to increase potential profits.

  • By leveraging borrowed funds, companies can significantly expand their operations and market reach.

Synonyms

leverage
vsleveraging
  • Specialized
28 7.2

The use of borrowed money to increase investment returns while raising risk

refers specifically to the action of doing that rather than the general concept

How Leveraged

to overleverage
  • Specialized
1 8.8
leveraging
  • Specialized
7.7
margining
  • Specialized
7.9
borrowing
60 2.3
to invest
715 3.5

Surface Forms

leveraging singular
leveragings plural

Morphology

leveraging = leverage (transparent) = leverage + ing

The sense is a straightforward gerund/participle of the verb 'leverage' meaning 'to use borrowed funds or influence to increase returns,' so the meaning follows directly from the base plus -ing.

Etymology

Leveraging comes from lever, the simple tool that helps you lift a heavy thing with a small push, and from the old Latin levare meaning 'to raise'. So in finance, to leverage (or use leveraging) is to use borrowed money to 'raise' your returns — making gains bigger but also making losses bigger.