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Precious metals investment terms A to Z

Leverage

The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Sample: For example, say you have $1,000 to invest. This amount could be invested in 10 shares of Microsoft stock, but to increase leverage, you could invest the $1,000 in five options contracts. You would then control 500 shares instead of just 10.

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