Last answered:

21 Mar 2023

Posted on:

19 Mar 2023

0

Resolved: Leverage ratio 100:1

How could we obtain such large ratio? Or do we have maintenance margin in denominator which can only be represented as reserved cash that can't be traded on?

1 answers ( 1 marked as helpful)
Instructor
Posted on:

21 Mar 2023

1

Hello Ruslan!


Thanks for reaching out!


A 100 to 1 margin ratio means that an investor can borrow up to 100 times the amount of their initial investment to purchase securities. However, such a high margin ratio is typically only available for professional or institutional investors, and not for individual retail investors.


In general, to obtain a 100 to 1 margin ratio, an investor would need to work with a broker that offers such high levels of margin financing. The broker would typically require the investor to meet certain eligibility criteria, such as having a high net worth, a track record of successful trading, and a strong understanding of the risks involved in margin trading.


Hope this helps!


Best,

The 365 Team

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