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How to calculate the leverage ratio of futures contacts


Leverage = futures contract value/margin.

 

Take the COMEX copper contract of CME Exchange as an example:

 

Contract value 2.1150 (quotation) * 25000 (contract multiplier) = 52875

 

Margin 2500 (published on official website)

 

Leverage=52875/2500=21.15, which is over 20 times leverage.

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