Leverage (Hebel)
A factor that multiplies a product's gains and losses compared with its underlying.
In short
As of 8 October 2026Leverage multiplies a financial product's gains and losses compared with its underlying. With leverage 10, a 1 % price move acts like 10 % on your capital. It is found in CFDs, warrants and knock-out certificates, among others. Even small declines can wipe out your entire stake.
Leverage means you control a larger position with little of your own money. With leverage 5, every price move hits your capital five times as hard, up and down. Leverage is built into derivatives such as CFDs, warrants and knock-out certificates, and also into securities loans.
The risk: even small declines can wipe out your stake. With knock-outs everything is gone, with CFDs the position is closed out. A drawdown that a broad index recovers within a few years can wipe out a leveraged position completely.
Example: you put 1,000 euros with leverage 10 on a stock, so the position is worth 10,000 euros. If the stock falls 10 %, you lose 1,000 euros, your entire stake.
Related terms
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.