The use of leverage in forex trading is often likened to a double-edged sword, since it magnifies both gains and losses.

Total debt-to-total assets is a leverage ratio that shows the total amount of debt a company has relative to its assets.

A commodity futures contract is an agreement to buy or sell a commodity at a set price and time in the future. Read how to invest in commodity futures.

A leveraged buyback is a corporate finance transaction that enables a company to repurchase some of its shares using debt.

Initial margin is the amount required to buy a stock on margin, while maintenance margin is the equity needed to keep the position open.

Margin debt is money that an investor borrows from their brokerage firm to buy stock. The maximum amount is limited by law and by the brokerage’s own rules.

The term "capital intensive" refers to industries that require large amounts of capital investment and thus have a high percentage of fixed assets.

Leverage is nothing more or less than using borrowed money to invest. Leverage can be used to help finance anything from a home purchase to stock market speculation. Businesses widely use leverage ...

A contract for difference (CFD) is a marginable financial derivative used to speculate on very short-term price movements for a variety of underlying instruments.

A currency carry trade is a strategy that involves using a high-yielding currency to fund a transaction with a low-yielding currency.

Capital structure is the combination of debt and equity a company has for its operations and to grow.

Leverage is another big risk in forex trading. Using leverage, which means trading on margin, allows the purchase of assets at a fraction of the actual cost.