My order amount has been under the total equity, but the leverage shows as high as 4x. How is this max leverage calculated?
Leverage is: total notional $ value of position controlled divided by dollar-value of Model Account.
So in the case of stock, it has always been less than the model account, except for one or two trades. Why is the leverage 2+, then? The graph above shows that the notional trade values are always less than the model account value.
Maybe you’ve traded leveraged etfs ?
How does that matters? My risk is still the same whether a regular stock goes down 10% or leveraged ETF goes down 10%. The amount of money at risk is the same. By this logic, A 25k option account, buying 30 Tesla calls@$7 when stock is at $100, should have the leverage of 300000/25000 = 12.