Home Wikituition Browse all terms Categories
Random term

Risk & Portfolio Management

2 terms

A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Filtering by: Risk & Portfolio Management Starts with L Clear all
Risk & Portfolio Management

Leverage

The use of borrowed capital to increase the size of a position relative to the money committed.

Leverage = Total Position Value / Own Capital Committed ratio (x, times) Risk & Portfolio Management

Liquidity Risk

The risk of being unable to exit a position at a reasonable price, or at all, when required.

Test: the position size is large relative to normal traded volume, or the security can become untradable under stress qualitative