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 ...

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 ...

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 ...

The use of a lever and fulcrum enables a worker to exert force far in excess of his unassisted strength. In the field of finance, the use of debt or borrowing to increase the size or profitability of ...

Adding leverage can magnify your return (both up or down). There are several ways to add leverage: Margin trading, most CEFs, leveraged ETFs, and options. I will briefly cover what I see as the pros & ...

Return on equity measures net income, or profit, as a percentage of stockholders' equity. A higher ROE means a business generates more profit per dollar of equity. Operating leverage measures how much ...