By introducing these factors into the futures price changes through a cost-of-carry model for setting the margin of stock index futures, we find that leverage and market impact in stock market are positively correlated with the margin.doi:10.1080/13504851.2017.1368982Hailong Liu...
Leverage is using borrowed money to purchase a larger amount of an investment for the same amount of cash. Using leverage is common in real estate investing, but stock market investors can also use leverage to boost their returns. Terminology In the stock market the use of leverage is called ...
In the financial market, leverage acts like a financial accelerator. It allows business companies to achieve more with less, magnifying their potential gains. But like a double-edged sword, it also heightens the risk, making it essential for investors and companies to understand how to wield it...
In physics, leverage provides a mechanical advantage by amplifying a small input force to achieve greater output.Financial leveragefollows the same principle. In this case, however, it amplifies an investor’s buying power in the market. Also known as margin trading,leverage tradingrefers to the u...
Trading with leverage involves borrowing money to invest in the stock market Leverage increases your risk for loss, to potentially unlimited loss from bad investments Your broker may sell investments on your behalf if their values drop below a set amount ...
The common stock beta for a unleverage f firm reflects the business risk. The beta shows the sensitivity of a stock's return to changes in macroeconomic factors or the returns of the market portfolio. ... Miswanto - 《Universitas Gadjah Mada》 被引量: 1发表: 1997年 ANALISIS FAKTOR-...
The leverage associated with Forex is much higher than that offered in otherfinancial markets, such as stock markets or commodity markets. Currency volatility rarely exceeds the 1% per day threshold, which is seen in the currency market as a fairly significant move. Leverage enables significant chan...
Of course, if the investment doesn’t work out in a prescribed period of time, the investor will need to return the money to the broker just the same, plus interest.In the past, huge stock market crashes have resulted from the overuse of leverage by masses of investors....
By comparing the results of EGARCH-t,TGARCH-t and GARCH-t models in calculating VaR in Shanghai stock market,the results show that:1.There is significant Leverage-Effect in Shanghai stock market,which makes an important impact on the VaR,and if the Leverage-Effect is ignored,the VaR would...
Volatility Analysis of Nepalese Stock Market Modeling and forecasting volatility of capital markets has been important area of inquiry and research in financial economics with the recognition of time-... BGC Surya - 《Social Science Electronic Publishing》 被引量: 9发表: 2008年 Journal of time seri...