Leverage Build Up

Filed Under » , ,
Dictionary Says

Definition of 'Leverage Build Up'

The accumulation of additional debt to enter a position that has the potential for large returns. From the perspective of portfolio management, leverage build up involves partaking in excessive leveraged positions for the opportunity to magnify returns. Leverage build up also occurs in corporate takeovers where a highly leveraged company purchases another leveraged company. Thus, the total debt of the parent increases.
Investopedia Says

Investopedia explains 'Leverage Build Up'

Leverage build up, whether referring to portfolio management or corporate finance, increases the risk exposure of the investment. If the position does not come to fruition, the debt must still be repaid in a timely manner in order to avoid bankruptcy.
Search results for

'Leverage Build Up'

  • Forex Leverage: A Double-Edged Sword

    http://www.investopedia.com/articles/forex/07/forex_leverage.asp
    ... Forex trading does offer high leverage in the sense that for an initial margin
    requirement, a trader can build up - and control - a huge amount of money. ...

  • Leverage's "Double-Edged Sword" Need Not Cut Deep

    http://www.investopedia.com/articles/forex/08/forex-leverage.asp
    ... Factors To Consider There is more to managing leverage than just setting up a 2 ... but
    is unlikely to be hit, then you can use leverage to build profits quickly ...

  • How Much Trading Capital Do Forex Traders Need?

    http://www.investopedia.com/articles/forex/10/trading-capital.asp
    ... over time, traders with small accounts often feel pressured to use large amounts
    of leverage or take on excessive risk in order to build up their accounts ...

  • Price Volatility Vs. Leverage

    http://www.investopedia.com/articles/optioninvestor/07/volatility_leverage.asp
    ... (It is possible that you may end up with the ... Only then will you be ready to develop,
    build and/or ... there, adjustments can be made to your leverage to increase ...

  • 5 Lessons From The World's Biggest Bankruptcies

    http://www.investopedia.com/articles/economics/09/lessons-worlds-biggest-bankruptcies.asp
    ... of leverage is not necessarily a bad thing, excessive leverage is generally too ... But
    this does not preclude exploring other alternatives to build up a liquidity ...

  • Understanding Leveraged Buyouts

    http://www.investopedia.com/articles/financial-theory/08/leveraged-buyouts.asp
    ... is the leveraged build-up, and the concept is both defensive and aggressive in nature.
    In a competitive marketplace, a company may use leverage to acquire one ...

  • Clouds Good And Bad For Red Hat

    http://stocks.investopedia.com/stock-analysis/2011/Clouds-Good-And-Bad-For-Red-Hat-RHT-TIBX-HPQ-IBM-SAP-VMW-CNQR0624.aspx
    ... Scarcity Value Picking Up? To some extent, the question of whether Red Hat
    can build a leverage sales model may be moot. Alongside ...

  • Progress Software - A GARP Story With No "Guh"

    http://stocks.investopedia.com/stock-analysis/2012/Progress-Software---A-GARP-Story-With-No-Guh-PRGS-IBM-ORCL-MSFT0106.aspx
    ... (For related reading, see Operating Leverage Captures Relationships.). ... the fact is
    that Progress' old business is eroding faster than they can build up the new. ...

  • Starting A Small Business In Tough Economic Times

    http://www.investopedia.com/articles/pf/09/start-business-in-depressed-economy.asp
    ... who can refer customers and help build your business. ... ideas to lower your start-up
    costs include ... Using the economic situation as leverage when negotiating rents ...

  • The Greatest Currency Trades Ever Made

    http://www.investopedia.com/articles/forex/08/greatest-currency-trades.asp
    ... This is much too small and slow for true forex traders, so they use puts, calls,
    other options and forwards to build up and leverage their positions. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links