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

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

Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski.

From The Wall Street Journal ● Oct. 12, 2026

But because the leverage is long term and the product is packaged in an ETF, it might seem less risky to potential buyers.

From MarketWatch ● Oct. 10, 2026

“Oh no, you don’t,” the nagual said, using my elbows as leverage to lift me from the ground.

From "Summer of the Mariposas" by Guadalupe García McCall

And in my next issue of Let’s Analyze, I’ll break down the leveraged Treasury trade I just added to my own portfolio to capitalize if yields continue falling.

From MarketWatch ● Oct. 16, 2026

Everyday traders have gained access to new, riskier assets, from event contracts and private companies to leveraged perpetual futures and even tokenized stocks.

From The Wall Street Journal ● 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

In the wake of Hadiya’s death, Tina had leveraged her local contacts, encouraging Chicago business leaders and philanthropists to work with Mayor Rahm Emanuel to expand community programs for at-risk youth across the city.

From "Becoming" by Michelle Obama

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

Banks are expected to step up efforts to strengthen asset quality and recoveries while leveraging fee income to support revenue as net interest income remains modest, he says.

From The Wall Street Journal ● Sep. 2, 2026

“With Lucid, you collect so much intelligent information from the car. And now here we are collecting information about the health of a member and leveraging that. There’s a lot of resemblances,” he said.

From The Wall Street Journal ● Aug. 20, 2026

"But now, along with more spending power, there is improved access, distribution and product education. The internet broke these barriers, with brands leveraging the power of social media platforms and influencers to reach consumers directly."

From BBC ● Aug. 19, 2026

It made sense, Gus leveraging his terminality to make my dream come true: The sequel was a tiny thing to die for, but it was the biggest thing left at his disposal.

From "The Fault in Our Stars" by John Green

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Related Words

• advantage
• bargaining chip
• clout
• weight

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