Imagine you have 10,000 kroner, but you want to buy shares for 50,000. Your broker allows you to leverage the investment 5 times. If the stock rises 10 percent, you have earned 5,000 kroner. That equals a 50 percent return on your own money! But remember: the same happens if the stock falls.
Leverage amplifies everything you send out into the market. It can make you rich quickly, but it can also wipe out your savings in minutes.