Leverage Trades

Q&A
1

Hi! How should I indicate in StocksCafe if i have positions that are leveraged? Such as 4x, 5x, 10x. Should I multiply my positions by the leverage? As the VaR or other ratios in StocksCafe is likely to assume my positions are 1x without leverage.

I would like all these ratios to accurately display my risk.

2

Hi there,

I would think that as long as you enter the correct units/shares of your positions, the VaR would be accurate.

StocksCafe does not compute your probability of Margin call though.

Cheers,
Evan