Leverage ratio: usually refers to the ratio of total assets to equity capital in the balance sheet. High leverage ratio means that companies or individuals use a lot of external financing to buy assets or invest, which may increase their potential financial risks.
Leverage ratio: usually refers to the ratio of funds obtained by borrowing to self-owned funds.
For example, the margin required by traders when trading futures products is 10%, which is equivalent to 10 times leverage; If an 8% margin is required, the leverage ratio is 12.5.