Leverage [220]
Leverage primarily considers Portfolio Equity and Liabilities, where Portfolio Equity is defined as Assets subtract Liabilities. The Leverage factors account for 220 of the total Credit Score.
Last updated
Leverage primarily considers Portfolio Equity and Liabilities, where Portfolio Equity is defined as Assets subtract Liabilities. The Leverage factors account for 220 of the total Credit Score.
Last updated
| Factor | Calculation | Description | Weight |
|---|---|---|---|
Portfolio Leverage
Liability / Portfolio Equity
Assets a trading has borrowed in relation to the Portfolio Equity of the trading firm, where Portfolio Equity is calculated as Assets - Liability. The upper limit is dynamic based on the selected company type.
110
Portfolio Equity
Assets - Liability
Portfolio Equity is converted to a score using a logarithmic curve, a minimum Net Equity of $7m, and a maximum Net Equity of $500m.
110