What are Financial Leverage Ratios?

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Forex Leveraged Trading and other Forex topics.

What are Financial Leverage Ratios?

What are Financial Leverage Ratios?

In traditional business courses, financial leverage ratios are ratios used to determine the solvency of a firm, and include the debt to equity ratio, the debt to assets ratio, and interest coverage which equals EBIT/interest charges.

The concept of leverage also applies in trading, as Forex traders use leverage by trading with more dollars that are actually in their accounts.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Forex Tip Site? Request a Tip Now!

Guru Spotlight
George Sayour