leverage

American  

[lev-er-ij, lee-ver-] / ˈlɛv ər ɪdʒ, ˈli vər- /

noun

1. 

   the action of a lever, a rigid bar that pivots about one point and that is used to move an object at a second point by a force applied at a third.

2. the mechanical advantage or power gained by using a lever.

3. power or ability to act or to influence people, events, decisions, etc.; sway.

   Being the only industry in town gave the company considerable leverage in its union negotiations.

   Synonyms:

   pull, clout, weight, strength, advantage

4. the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.

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verb (used with object)

leveraged, leveraging

1. to use (a quality or advantage) to obtain a desired effect or result.

   She was able to leverage her travel experience and her gift for languages to get a job as a translator.

2. to provide with leverage.

   The board of directors plans to leverage two failing branches of the company with an influx of cash.

3. to invest or arrange (invested funds) using leverage.

4. to exert power or influence on.

   It was Joe who leveraged her to change her habits.

leverage British  

/ ˈliːvərɪdʒ, ˈlɛv-, -vrɪdʒ /

noun

1. the action of a lever

2. the mechanical advantage gained by employing a lever

3. power to accomplish something; strategic advantage

4. the enhanced power available to a large company

   the supermarket chains have greater leverage than single-outlet enterprises

5. US word for gearing

6. the use made by a company of its limited assets to guarantee the substantial loans required to finance its business

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leverage Cultural  

1. The amount in which a purchase is paid for in borrowed money. The greater the leverage, the greater the possible gain or potential loss.

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Other Word Forms

• nonleveraged
  adjective
• unleveraged
  adjective

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Etymology

Origin of leverage

First recorded in 1715–25; lever + -age

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Explanation

If you have leverage, you hold the advantage in a situation or the stronger position in a contest, physical or otherwise. The lever is a tool for getting more work done with less physical force. With the right leverage, you might be able to lift a heavy box. This refers to non-physical situations too: the power to move or influence others is also leverage. Since your boss has the power to fire you, that's a lot of leverage to get you to do what he wants. If your friend owes you a favor, you have leverage to get a favor of your own.

Example Sentences

See Examples For:

leverage leveraged leveraging

The bigger this ratio, the more extreme the moves can be as leverage exaggerates them.

From MarketWatch ● Oct. 15, 2026

They have also on average increased their overall leverage.

From The Wall Street Journal ● Oct. 15, 2026

Plus, a Nobel laureate leaves his mark on recessions, AI leverage risk, and does California aspire to be like France?

From The Wall Street Journal ● Oct. 14, 2026

D-Wave Quantum announces a multi-year agreement with SkyWater Technology to leverage the IonQ-owned company’s foundry services.

From Barron's ● Oct. 13, 2026

It acts as a key would and provides leverage.

From "The Manifestor Prophecy" by Angie Thomas

Unlike the hundreds of leveraged and inverse ETFs that came before it, the new Roundhill ETF is designed as a long-term leveraged play on the direction of the S&P 500.

From MarketWatch ● Oct. 10, 2026

ETFs that use derivatives like options to offer investors leveraged exposure to a given index, stock or asset have proliferated in recent years.

From MarketWatch ● Oct. 10, 2026

While we tend to think that carbs promote fat storage, Whitson said that when leveraged correctly, this isn’t true.

From Slate ● Oct. 9, 2026

The crypto firm is emerging as a serious player in financing leveraged ETFs, a lucrative business long dominated by big banks.

From The Wall Street Journal ● Oct. 8, 2026

The social disruption caused by the collapse of the savings and loan industry and the rise of hostile takeovers and leveraged buyouts had given way to a brief period of recriminations.

From "The Big Short" by Michael Lewis

YouTube relies primarily on an ad-supported model, whereas Amazon is leveraging free live access to draw massive global audiences into its wider ecosystem.

From BBC ● Oct. 6, 2026

There are going to be exceptions to the rule, but oftentimes you see even these candidates leveraging social media and talking policy in a different way.

From Slate ● Oct. 6, 2026

“Critically, it also maintains the importance of California’s successful transfer pathway and encourages the CSU and community colleges to continue to work together, leveraging each other’s strengths to serve all students to the fullest.”

From Los Angeles Times ● Sep. 1, 2026

The ingredient revamp helps it stand out without relying solely on discounts, executives said, and the chain is leveraging the effort to go after rivals, including in an X post targeting Five Guys in August.

From The Wall Street Journal ● Aug. 30, 2026

Steve Eisman was odd in his conviction that the leveraging of middle-class America was a corrupt and corrupting event, and that the subprime mortgage market in particular was an engine of exploitation and, ultimately, destruction.

From "The Big Short" by Michael Lewis

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Related Words

• advantage
• bargaining chip
• clout
• weight

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