Glossary · Trading basics · L
Leverage in plain English.
Controlling a large position with little capital. A $2.45 call controls 100 shares for $245, so gains and losses are a much bigger percentage of the money put in.
Track
Trading basics
29 terms in this track
Taught in
Long calls and puts: directional options
In the index
62 of 129
Filed under L
Connections
8
Related terms mapped below
01
The idea, in context
How to read the picture above and where the Academy teaches it.
Reading the illustration
Strikes around today’s price, drawn for a put: strikes above the price are in the money, below it out of the money.
In French: Effet de levier
Where it’s taught
Trading basics
Long calls and puts: directional options
“Long calls and puts: directional options” introduces this term with worked examples, a quiz and the trades around it. The Academy is part of the YieldCove membership.
02
Connected terms
8 terms around this one — the words its definition uses, its lesson siblings and the terms that build on it.
- Used in this definition
- Same lesson
- Builds on this term
- Same track
03
Where to go next
Understand it, try it with real numbers, then track it for free.
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