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A comment on Wall Street Stole My Smart Friends. Parent comment

Re:Wall Street Stole My Smart Friends by maximilian on Sunday March 30, 2008 @12:39AM (#149895)
This is going to sound stupid, but could you (or whoever) explain what leverage means? I'm plenty good at math but i'm a super newbie at the financial sector lingo.
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Re:Wall Street Stole My Smart Friends by rms on Sunday March 30, 2008 @12:57AM (#149901)
5:1 leverage means trading with 5x borrowed money and 1x real money. This drastically multiplies potential gains, losses, and overall risk.
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