Leverage in finance refers to liabilities. \r\n For example, if an enterprise has its own capital of 65.438+billion yuan and various debts such as loans and accounts payable of 9 billion yuan, its total assets will be 65.438+billion yuan. We say that its financial leverage is total assets-own funds = 654.38+00 times. \ r \ nIt can be seen that the higher the leverage, the greater the business risk. If an enterprise does not borrow money, but operates with the owner's own money, then his leverage is zero. \ r \ n \ r \ For another example, buy a standard futures contract with a face value of 65,438+0,000 yuan and ask for a deposit of 65,438+0,000 yuan. Theoretically, an investor needs to have 1 10,000 yuan here to prepare the delivery contract, but if he is a speculator and accurately judges the trend, he can put in the extra 9,000 yuan. This amplification effect is called "leverage", that is, leverage assets with 1 times the capital, where the leverage ratio is 10. \ r \ n for reference.