Means of enhancing profitability using borrowed money. A leverage effect can also be achieved with derivatives , enabling market operators to invest in sizeable holdings of an underlying for a relatively modest capital outlay. The upshot of leveraging is that any percentage change in the gains and losses on options and futures contracts will be larger than the corresponding change in the underlying. The obligations of a business to its creditors, suppliers, customers, etc, as distinguished from those to its proprietors, partners or shareholders. In general, the obligations and commitments an entity is obliged under law to honour or perform.
Liabilities can be to creditors, shareholders, customers, etc.
Another word for liabilities is debt. A liability arising from the signature on the bill of exchange . If the claim is not met, the creditor is entitled to realize the property securing the lien and to satisfy his claim out of the resulting proceeds. Serves only as evidence and therefore lacks the characteristics of a security. Standardized financial futures have been traded on this exchange since 1982.