# How is Indices Trading Leverage Calculated?

stock indices leverage is calculated based on a ratio. The ratio can be 100:1 or 50:1 or 10:1.

**For 100:1 stock indices leverage ratio it means **

1:100 stock indices leverage option means a indices trader can borrow $100 dollars from their indices broker for every $1 dollar in their stock indexes trading account, therefore a indices trader with a deposit of $1,000 can borrow up to $100,000 from their indices broker - ($1,000*1:100 which is equal to $100,000). A indices trader can then use this borrowed capital to open stock indexes trades with.

**For 50:1 stock indices leverage ratio it means **

1:50 stock indices leverage option means a indices trader can borrow $50 dollars from their indices broker for every $1 dollar in their stock indexes trading account, therefore a indices trader with a deposit of $1,000 can borrow up to $50,000 from their indices broker - ($1,000*1:50 which is equal to $50,000). A indices trader can then use this borrowed capital to open stock indexes trades with.

**For 10:1 stock indices leverage ratio it means **

1:10 stock indices leverage option means a indices trader can borrow $10 dollars from their indices broker for every $1 dollar in their stock indexes trading account, therefore a indices trader with a deposit of $1,000 can borrow up to $10,000 from their indices broker - ($1,000*1:10 which is equal to $10,000). A indices trader can then use this borrowed capital to open stock indexes trades with.

To Learn and Know More about Indices Trading Leverage and Margin - Read the Topics Below:

Indices Trading Leverage and Margin Explained