Leverage is the ratio of the amount used in a transaction
to the required security deposit (margin). It is the ability
to control large dollar amounts of a security with a
comparatively small amount of capital. Leveraging
varies dramatically with different brokers,
ranging from 10:1 to 100:1.
Leverage is frequently referred to as gearing.
The formula for calculating leverage is:
Leverage = 100/Margin Percent
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