These properties can be real estate, precious metals or other assets. When the asset is real estate the lessee is the tenant. The lessor either owns the property of holds a master lease which grants ownership-type powers. In the case of real estate, the lessor would be considered as the landlord. Leverage - Refers to the concept of increasing, multiplying, or magnifying the market impact of an investment.
Leverage magnifies both the gains or the losses.
In corporate finance, leverage often means the amount of debt to equity. Borrowing can enhance shareholder equity returns because the interest is deductible but the profits remain for the common share investors. For derivative products, little or no margin is required for placing positions. Depending on the instrument, market, exchange and other factors, valuation swings may have to be satisfied by new margin or performance bond monies. As can be seen, paying all cash is effectively 100 percent margin and no leverage.