Gearing

The ability to hold an investment position of greater value than that of your equity (collateral). When gearing (also called leveraging) your investment, you need only deposit a fraction of the current value of the instrument you are investing in.

For example if the commodity you are trading in requires a margin of 5%, this allows you to leverage (or gear) your investment 20 times. In other words, a deposit of USD 10,000 can hold a position of USD 200,000.