Glossary · PSX term

Leverage.

Leverage is using borrowed money to increase the size of an investment position.

Definition

Leverage magnifies both gains and losses relative to your own capital, so a small adverse move can wipe out a large share of your equity. On the PSX, leverage comes through margin financing (MTS) and futures.

Worked example

Using 5x leverage, a 10% drop in the stock can erase about 50% of your own invested capital.

Related on PSX Clarity

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Lower lock

Lower lock is a market limit where a stock reaches its maximum allowed downward move for a session. It can indicate selling pressure, but investors still need source-backed context.

Liquidity

Liquidity is how easily you can buy or sell a stock without moving its price much.

Listing

Listing is the process of getting a company's shares admitted for trading on the exchange.

Limit order

A limit order sets the maximum price you will pay to buy or the minimum you will accept to sell.

Loss aversion

Loss aversion is the tendency to feel losses more painfully than equivalent gains.