Definition

Capital Ratio

The proportion of an investor's own equity relative to the total value of their trading portfolio.
Greeks.liveMarch 9, 2026

Capital Ratio

The capital ratio is the proportion of an investor's own money (equity) relative to the total value of their positions. It is a measure of how much of a portfolio is funded by the investor versus by the broker.

A higher capital ratio indicates lower leverage and reduced risk of forced liquidation due to market volatility.

Risk-Reward Ratio
Loan-To-Value Ratio
Equity Multiplier
Margin Ratio
Loan-To-Value
Risk Management
Debt-To-Equity
Margin Level

Glossary

Risk Reward Ratio Analysis

Calculation ⎊ Risk Reward Ratio Analysis, within cryptocurrency, options, and derivatives, represents a quantitative assessment of potential profit relative to potential loss on a trade.