leverage

UK /ˈlɛv(ə)ɹɪd͡ʒ/ US /ˈlɛv(ə)ɹɪd͡ʒ/
noun 5verb 1

Definitions

noun

1

A force compounded by means of a lever rotating around a pivot.

A crowbar uses leverage to pry nails out of wood.

In order to proportion the braking force to the weight carried by a wheel - a matter of special importance in the braking of wagons - variable leverage systems are now being introduced in which the end of one axle spring is linked to a control spring in the change-over valve, so automatically varying the leverage exerted by the brake-rod according to whether the wagon is full or empty.

2

Any influence which is compounded or used to gain an advantage.

Try using competitors’ prices for leverage in the negotiation.

The former Forest man, who passed a late fitness test, appeared to use Guy Moussi for leverage before nodding in David Fox's free-kick at the far post - his 22nd goal of the season.

3

The use of borrowed funds with a contractually determined return to increase the ability to invest and earn an expected higher return, but usually at high risk.

Leverage is great until something goes wrong with your investments and you still have to pay your debts.

Online margin trading is usually based on leverage, where the brokerage effectively lets you borrow more money than you have deposited as collateral.

4

The debt-to-equity ratio.

In such cases where there is a multiple capital structure the factor known as leverage comes into play.

5

The ability to earn very high returns when operating at high-capacity utilization of a facility.

Their variable-cost-reducing investments have dramatically increased their leverage.

verb

1

To use; to exploit; to manipulate in order to take full advantage (of something).

They plan to leverage the publicity into a good distribution agreement.

They plan to leverage off the publicity to get a good distribution agreement.

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