A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

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 ...

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 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. Dr. JeFreda R. Brown is a financial consultant, Certified ...

The rationale for a higher benchmark is clear but regulators must clarify its role, alongside a risk-based capital regime, to reduce distortions and save the securities-financing market from a ...

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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 ...

Interest in municipal closed-end funds (CEFs) vs. municipal bonds often stems from higher return potential—this is mostly due to the use of leverage in municipal closed-end funds. Leverage could ...

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 ...

To understand leverage in options trading, we need to look at how options contracts work briefly. An option gives the owner the right (but not the obligation) to buy or sell an asset at a specified ...