Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

The leverage ratio was introduced as an essential pillar of the Basel III Accord. It backstops the risk-weighted capital requirements for credit exposures and provides a capital floor that mitigates ...

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 ...

NEW YORK (Thomson Reuters Regulatory Intelligence) - Traditional bank-centric leverage metrics such as assets-to-capital tend to underestimate the full extent of leverage, as they fail to capture ...

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).

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 ...