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Since the early 19th century, literally has been widely used as an intensifier meaning “in effect, virtually,” a sense that contradicts the earlier meaning “actually, without exaggeration”: The senator was literally buried alive in the Iowa primaries. The parties were literally trading horses in an effort to reach a compromise. The use is often criticized; nevertheless, it appears in all but the most carefully edited writing. Although this use of literally irritates some, it probably neither distorts nor enhances the intended meaning of the sentences in which it occurs. The same might often be said of the use of literally in its earlier sense “actually”: The garrison was literally wiped out: no one survived.

The use of literally as an intensifier is common, esp in informal contexts. In some cases, it provides emphasis without adding to the meaning: the house was literally only five minutes walk away. Often, however, its use results in absurdity: the news was literally an eye-opener to me. It is therefore best avoided in formal contexts