9 Tips about Leverage

Beware of leverage in all its forms. Borrowers – individual, corporate, or government – should always match fund their liabilities against the...
The banking business is no favorite of ours. When assets are twenty times equity -- a common ratio in this industry -- mistakes that involve only a...
Financial stocks are particularly risky. Banking, in particular, is a highly lever- aged, extremely competitive, and challenging business. A major...
The typical sequence of boom and bust has an asymmetric shape. The boom develops slowly and accelerates gradually. The bust, when it occurs, tends...
Leverage does not have to be dangerous. Non-recourse debt on an asset can serve to make a large purchase more affordable. Taking out a non-recourse...
For a new forex trader, set a leverage ratio of 50:1 or less so that you do not enter into a state of fear if your account balance begins to dwindle...
When trading currencies, you are dealing with countries, and countries have interest rates, of course. For example, in the CAD/JPY trade, a trader who...
To some extent, balance sheet risk is a character issue for us. The CEO whose company has a great balance sheet probably isn’t going to make the...
Using a highly leveraged account comes at a cost. It will, of course, give a trader more financial gear to trade, and also a trader's broker will be...