# Thread: how to figure true leverage

1. Newbie
Join Date
Jun 2007
Posts
29

## how to figure true leverage

I have a question about true leverage I got from your site. Lets say I have 10,000 dollars in my account and I buy a 10,000 lot size(1 Mini lot) of gby/jpy with an exchange rate of 212.17 that costs a total of 19,514 dollars. To determine true leverage do you divide the 19514 dollar figure or the 10,000 lot size figure with your account figure of 10,000 dollars. Meaning 19,514/10,000 for 1.9 true leverage or 10,000 lot size/10,000 for 1.0 true leverage. Thanx Much
Steve

2. You divide the value of your position - the 19,514 in your example - by your account value.

3. Newbie
Join Date
Jun 2007
Posts
29

## Thanks Rhody.

So its not "position size/ Account value" as some here were saying, its "position value/ Account value.

I have possibly one more question on this subject but will not be able to post it till this sunday night or monday morning, if you plan on being around on the board around that time period. Thanks Much.
Steve

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