What's a Good Leverage Ratio for Beginners?
The standard stock leverage ratio provided by most brokers is 100:1 leverage.
This means that a trader can borrow $100 from their broker for every $1 dollar in their stock trading account.
For this stock leverage ratio it means that the margin requirement for a account is 1% - 1/100 is equal to 1 %
A trader can also select the 50:1 trading leverage
This stock leverage ratio of 50:1 - means that a trader can borrow $50 from their broker for every $1 dollar in their stock trading account.
For this stock leverage ratio it means that the margin requirement for a account is 2% - 1/50 is equal to 2 %
To Learn and Know More about Leverage & Margin - How to Read the Topics Below:
Leverage & Margin Explained