gearing

7(in COB) a strategy, with a view to enhancing the return for, or the value of, a security without increasing the amount invested by the holders of the security, involving one or more of the following:

1. (a) borrowing money;
2. (b) investing in one or more instruments, such as (but not limited to) warrants or derivatives, for which a relatively small movement in the value or price of the underlying rights or assets to which the instrument relates, whether favourable or adverse, results in a larger movement in the value or price of the instrument; and
3. (c) structuring the rights of holders of a security so that a relatively small movement in the price or value of the underlying rights or assets, whether favourable or adverse, results in a larger movement in the price or value of the security.