What is a leverage ratio? A leverage ratio is a financial measurement of debt. It puts an entity's debt into better context by showing it as a ratio relative to another financial metric like equity or ...
Leverage ratios can help option traders make the most out of every dollar invested, and determine how much of a profit a trade could potentially yield. The leverage ratio -- the leverage a trader gets ...
In technical terms, leverage is the ratio between the amount of money you have in your account and the total size of positions the broker allows you to take. You’re using leverage every time you enter ...
Regarding Thomas Hoenig’s “Why ‘Risk-Based’ Capital Is Far Too Risky” (op-ed, Aug. 12): Mr. Hoenig takes issue with our criticism of the leverage ratio, arguing, “The leverage ratio has proven most ...
If you are reading this, you must have heard all the cautionary disclosures about leverage in general and also the specific risks surrounding leveraged funds like the ProShares UltraPro S&P500 (UPRO).
Many people are interested in forex trading because it offers something other financial instruments often can't—access to significantly higher leverage. While the word "leverage" is tossed around ...
A recent op-ed on this blog by Paul Kupiec misstates the Clearing House’s criticism of the supplementary leverage ratio. Kupiec’s article indicates that the Clearing House’s position is contained in a ...
Momentum is building to improve capital rules. Recently, Federal Reserve Chair Janet Yellen publicly acknowledged that aspects of the banking agencies’ supplementary leverage ratio “may be having ...
In a dramatic week for Bitcoin price action, traders are keen to capitalize, hitting a new all-time high for the leverage ratio. The estimated leverage ratio for Bitcoin (BTC) hit a new all-time high ...