Leverage
Plain definition. In the FCA Handbook, leverage is any method a fund manager uses to increase a fund’s exposure, such as borrowing cash or securities or using derivatives.
Technical definition. The FCA Handbook glossary defines leverage as any method by which an AIFM increases the exposure of an AIF it manages. That can be through borrowing of cash or securities, through leverage embedded in derivative positions, or by any other means. The entry notes that the definition comes from article 4(1)(v) of AIFMD.
On this site
On this site, Leverage comes up in Is an XRP liquidity multiplier just leverage? and How do leveraged XRP derivatives, funding rates and liquidations move XRP’s price?.
Source
FCA Handbook - leverage (handbook.fca.org.uk), read October 1, 2026.