Gearing is adding borrowed funds to your own to purchase an investment. A well-known form of gearing is the purchase of property using borrowed funds via a mortgage. Investors can also gear into the share market by adding borrowed funds to their own to purchase an investment portfolio.
Gearing is typically a strategy used by more sophisticated investors, or those with a high-risk appetite. This is because while returns can be magnified, so too can losses.
Gearing may not be suitable for all investors. You should always seek professional advice.