The Power of Leverage
The Power of Leverage
📈 In this activity, students will explore the power and risks of leverage by analyzing the price movements in trading. They'll calculate percentage gains and losses, compare leveraged vs. non-leveraged trades, and reflect on strategies to manage risk. The final question encourages critical thinking about real-world financial decision-making.
⚠️ It’s essential to introduce the key terms in the starter activity first (see solutions & supporting materials) to ensure students build a strong foundation before diving into calculations in the main activity. Be sure to check the speaker notes in the starter slides for discussion prompts and answers to guide the conversation.
📝 Though aligned with middle school CCSS, due to the concept of trading, more suitable for upper middle and high school students
⏰Min. 60 minutes, including the starter activity