Financial leverage refers to the use of debt to acquire additional assets. The use of financial leverage to control a greater amount of assets by borrowing money will cause the returns on the owner's cash investment to be amplified. For example, you own $100 cash and can only buy one share of company A’s stock, if you use 10x leverage, you are able to buy 10 shares, when stock price rises to $100, your gain is $100. When stock price decreases to $90, you will lose all of the $100 cash investment. Leverage is risky, it is crucial that you can properly analysis the direction of price change.