Investing.com - Financial Markets Worldwide

Surprising Stockmarket Leverage Charts

Published 04/10/2017, 12:22 AM
Updated 07/09/2023, 06:31 AM

In this video we look at a couple of interesting and innovative charts that give another view on leverage in the stockmarket. Most people have seen the charts of US margin debt, but not many have seen the amount of notional leverage in the speculative futures space or indeed in the leveraged ETF space. The charts in this video appeared in the latest edition of the Weekly Macro Themes report. The charts reveal how much leverage has built up in these perhaps less traditional and somewhat more opaque parts of the market, and while not huge relative to the overall stock market capitalization, they show that in the next downturn there could be some major damage done as falling stock prices meet with rising stock market leverage. Check out the charts and accompanying commentary and analysis in the video by Head of Research, Callum Thomas, and be sure to comment your views and subscribe to the channel.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.