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Financial Leverage RatioGeneral

A measure of how much debt a company or trader uses relative to their own capital.

Initial MarginDerivatives

The minimum deposit required to open a leveraged derivatives position with the broker.

LeverageInstruments

A mechanism that amplifies gains and losses using borrowed capital from the broker. High risk.

LiquidationCrypto

The forced closure of a leveraged position when losses exceed the available margin.

MarginInstruments

The security deposit required by the broker to open a leveraged position. A portion of the total value.

Margin RequirementDerivatives

The minimum capital required to open and maintain a leveraged derivatives position.

Notional ValueGeneral

The total value controlled by a leveraged position, often much greater than the margin actually deposited.

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