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

Etymology

Origin of leverage

First recorded in 1715–25; lever + -age

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

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

The long-term nature of the leverage will also spare traders from the intense volatility decay experienced from holding leveraged ETFs that see big price swings and that reset daily.

From MarketWatch ● Oct. 10, 2026

If the rapid pace of imports continues, bilateral deficit could jump to $134bn, giving Beijing even more leverage over Indian industry, according to Srivastava.

From BBC ● Oct. 5, 2026

After the battle in the Djerholm harbor, the merchling had come to Kaz to warn him that he couldn’t be used as leverage against his father.

From "Six of Crows" by Leigh Bardugo

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

Pimco’s Dan Ivascyn this week told the Financial Times that the 10-year Treasury yield could hit 6% if highly leveraged investors have to suddenly unwind losing bets after weeks of heavy selling.

From MarketWatch ● Oct. 9, 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

On education, Barack and I had leveraged billions of dollars to help girls around the world get the schooling they deserve.

From "Becoming" by Michelle Obama

Leapmotor is leveraging Stellantis’s manufacturing footprint in Spain, and Geely is targeting production at Ford’s Spain plant from 2028, Bernstein adds.

From The Wall Street Journal ● Oct. 12, 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

"It comes through shared digital memory. YG Entertainment was early in leveraging digital platforms like YouTube, which built a lasting global fan foundation that has accumulated across two generations."

From BBC ● Sep. 27, 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

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

Related Words

• advantage
• bargaining chip
• clout
• weight