The degree to which an investor or business is utilizing borrowed money. The credit provided by the bank for margin trading.
Leverage Ratio
The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.
London Inter-Bank Offer Rate. The rate of interest that major international banks in London charge each other for borrowings.
The customer’s instruction to close a profitable position at a specific price.
Limit Order
An order that instructs a broker to buy or sell a specified amount of a security at a specified price or at a better price.