The Power of Leverage

2025-03-11 10:33:06

The Power of Leverage

 

šŸ“ˆ 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.

āš ļø 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.

šŸ“ Though aligned with middle school CCSS, due to the concept of trading, more suitable for upper middle and high school students
ā°Min. 60 minutes, including the starter activity 


 image by freepik

Activity Solutions & Supporting Materials
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