Leverage
Exposure to a position larger than the capital directly supporting it.
In more detail
Leverage can come from borrowing or a derivative contract supported by margin. A price move then affects a larger exposure than the collateral alone would suggest. This amplifies losses as well as gains, and the venue's margin rules can force liquidation before the trader chooses to close the position.
How you might use it
"My position has five times my collateral's exposure. A small price move matters more to that collateral than I first pictured."
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