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noun

leverage

/ˈlevərɪdʒ/  ·  say it: LEV·uh·rij

using borrowed money to amplify potential returns

In Banking & Finance

In more detail

1. (noun) power or advantage gained by using something as a tool or strategy

2. (noun) the mechanical advantage gained by using a lever

3. (verb) to use something to gain an advantage or achieve a goal

Examples

How to use leverage

Leverage is used in business, negotiation, and strategic contexts to describe using something as a tool or source of power. The noun emphasizes the advantage gained; the verb emphasizes the action of applying that advantage. It can also retain its technical meaning from physics (mechanical advantage from a lever), though this is less common in modern usage.

Common phrases

Synonyms

advantage · power · influence · tool · strategic advantage

Opposites

disadvantage · weakness

Word family

leveraged · leveraging · leverages

A common mistake

Learners sometimes confuse 'leverage' with 'leverage against,' though the preposition varies by context—you typically leverage a position or advantage, but leverage against an opponent.

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