Börsenlexikon: Lever

Leverage is used in the valuation of options and warrants. It is the factor by which the option or warrant falls or rises more than the underlying instrument (e.g. share). A leverage of 5 means that the warrant must theoretically rise/fall by 5 points if the price of the underlying stock rises or falls by 1 point. Leverage is divided into gearing (simple or normal leverage) and leverage (theoretical leverage).