Leverage
Using borrowed money to increase the size of an investment, amplifying both gains and losses.
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Related terms
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Cash Accounts
Understand cash brokerage accounts, settled funds, buying power and cash sweeps. Compare cash and margin mechanics, with a labelled US T+1 example and clearly stated risks.
Commissions
The explicit cost of trading: what commissions are, the forms they take, how the spread and currency fees act as hidden commissions, why 'commission-free' isn't free, and how trading costs quietly erode returns.
401(k)
The US workplace retirement plan: pre-tax and Roth contributions, employer matching formulas, vesting, tax deferral, limits and withdrawal conditions.
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