ROAR by DP TradeKING
Open account
NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)

What is Financial Leverage?

Financial Leverage — The use of debt to finance a company — it amplifies returns on equity but increases risk.

In simple terms

High financial leverage boosts ROE in good times, hurts in bad.

Why Financial Leverage matters when you invest

Understanding financial leverage helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.

Financial Leverage — frequently asked questions

What is Financial Leverage?

The use of debt to finance a company — it amplifies returns on equity but increases risk.

What does Financial Leverage mean in the stock market?

The use of debt to finance a company — it amplifies returns on equity but increases risk. High financial leverage boosts ROE in good times, hurts in bad.

Can you give an example of Financial Leverage?

High financial leverage boosts ROE in good times, hurts in bad.

Related terms

Debt-to-Equity RatioFundamentalsROE (Return on Equity)FundamentalsInterest Coverage RatioFundamentals

Put it into practice — open a free account.

Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.

🇮🇳 +91

or download the app
Download on theApp StoreGet it onGoogle Play
Glossary A–ZLearnGuides