Stock Leverage Calculator
Stock Leverage Calculator A crucial part of leverage stock trading is to use a stock leverage calculator to calculate how much margin capital, or collateral, is needed to open your position at a certain leverage ratio. Depending on what ratio you choose when trading with leverage you will have to more or less of your own capital to open the position. For example, a leveraged stock position with a ratio of 1:10 leverage requires 10% of your own margin capital while a leveraged position with a ratio of 1:100 leverage only requires 1% of your initial deposit. You could see how this can be extremely valuable information seen from a leverage risk management standpoint. In order to know how much your risk per position you need to be able to calculate how much money goes into each trade. This is especially important if you are into trading with high leverage. …