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  

/ ˈlɛv-, -vrɪdʒ, ˈliːvərɪdʒ /

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

Etymology

Origin of leverage

First recorded in 1715–25; lever + -age

Example Sentences

Rice argued that the city gave up its best leverage when it signed an earlier agreement to host the Games.

From Los Angeles Times • Apr. 9, 2026

“Operating leverage will increasingly materialize as asset growth compounds and productivity per advisor improves, aided by the technology investments the company has made,” the UBS analysts said.

From The Wall Street Journal • Apr. 8, 2026

A key issue will be the Strait of Hormuz, the narrow waterway into the Gulf through which one-fifth of the world's oil transits -- and where Iran has demonstrated it can exert key leverage.

From Barron's • Apr. 8, 2026

The Iranians have established a form of global economic leverage in ths Strait, and demonstrated its use.

From BBC • Apr. 8, 2026

He used no leverage and avoided shorting stocks.

From "The Big Short" by Michael Lewis

Related Words

• advantage
• bargaining chip
• clout
• weight