1, leverage ratio (leverage ratio), the leverage ratio is the ratio of the stock price to the warrant price at a certain point in time, which reflects the cost ratio of the investment stock to the investment warrant. Assuming that the leverage ratio is 10 times, it only shows that the cost of investing in warrants is one tenth of that of investing in stocks, which does not mean that when stocks rise 1%, they will invest in warrants. Leverage, also called leverage.
2. In the financial derivatives market, the leverage ratio is the ratio of the actual value represented by the futures or options position to the cash amount paid to establish the position. The higher the leverage ratio, the greater the profit or loss caused by the change of unit market price, which means that the higher the investment risk, the more gains will be made when the trend is favorable, and the more likely it will be lost when it is unfavorable.