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
State Channel
Secondary payment channel occuring off-chain
ROI
Short for “Return on Investment”, the ratio between the net profit and cost of investing.
Yield Farming
Yield farming involves putting cryptocurrency into a DeFi protocol to collect interest on trading fees.
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