Leverage
By CoinGecko | Updated on Mar 03, 2020
It is an investment strategy to gain potential return of the investment by borrowing the money. For example, you could loan from an exchange to conduct a margin trading, where you leverage your positions by buying asset at a low price (with the borrowed money) and sell them at a higher price.
Related Terms
Block
In the context of blockchain, block refers to the collection of transactional data or information that are bundled together in a predetermined size.
Permissioned Blockchain
It is a private blockchain where the nodes must be previously authorized by a central entity.
Collateralized Debt Obligation (CDO)
A collateralized debt obligation (CDO) is a form of derivative in which the value is generated from another underlying asset, and is sold to institutional investors.
Consensus
Consensus is achieved in a blockchain system when all participants agree on the content of the next block that will be added onto the blockchain.
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