What does leverage and risk mean？

Leverage refers to the use of borrowed funds or financial instruments to increase the potential return on an investment. It allows an investor to control a larger amount of assets with a smaller investment. However, it also amplifies the potential losses if the investment does not perform well.

Risk refers to the possibility of losing some or all of the invested capital. It is inherent in any investment and can be caused by various factors such as market volatility, economic conditions, company-specific risks, and geopolitical events. The higher the risk, the higher the potential return, but also the higher the potential loss.