Core Viewpoint - The article emphasizes that the leverage ratios in brokerage financing are a result of institutional regulations rather than subjective decisions by platforms, highlighting the importance of understanding the underlying mechanisms that determine these ratios [1][12]. Summary by Sections Leverage Ratios and Institutional Framework - Leverage in brokerage financing is constrained by a margin ratio system, with a common maximum leverage of 2 times, indicating a trend towards stability within the industry [3][4]. - Different brokerages, such as Citic Securities and Hengxin Securities, exhibit minor differences in financing leverage due to these regulatory frameworks [3]. Characteristics of Different Structures - Real trading platforms allow for more flexible leverage ranges, supported by diverse risk control mechanisms tailored to specific structural characteristics [5][6]. - The transparency of the funding path is crucial for high leverage to exist, as it isolates risks effectively [7]. Key Indicators for Safety - The safety of leverage is determined by three main indicators: the setting of risk control thresholds, the automation of risk control, and the existence of a verifiable trading chain [8][9]. - A lower risk tolerance or novice investors are advised to use conservative leverage (1 to 1.5 times), while more experienced investors may opt for higher leverage based on their trading strategies [10][12]. Risk Control and Transparency - Effective risk control mechanisms include public warning lines and risk lines, with a typical warning line around 70% and a risk line around 80% [11]. - The article suggests that the safety of leverage is contingent upon meeting specific criteria related to transparency, automation, and verifiability of transactions [13].

Core Viewpoint - The article emphasizes that the focus should not solely be on the leverage multiples offered by brokerage firms, but rather on the underlying principles and rules that determine these multiples and the associated safety margins [1][14]. Summary by Sections Leverage Multiples - In traditional brokerage systems, financing leverage is mathematically constrained by margin ratios, typically ranging from 1 to 2 times [3][4]. - Higher leverage multiples, such as 3, 5, or even 10 times, indicate a different structure known as "real trading leverage structure" rather than traditional brokerage financing [4]. Structural Characteristics - The characteristics of this structure include: 1. Emphasis on real market transactions rather than system simulations [5]. 2. Transparent risk control intervals, with common warning levels around 70% [6]. 3. Flexibility in leverage multiples, which depend on margin size, volatility of the underlying assets, and the risk threshold settings [10]. Risk and Strategy Considerations - The leverage multiples must be discussed in the context of trading strategies, as higher leverage does not equate to better outcomes but rather increased risk [10][11]. - Different leverage ranges are suitable for various strategies: - 1-2 times for long-term stability - 2-3 times for efficiency with transparent risk control - 3-5 times requires clear order tracking and risk documentation - 6-10 times necessitates real trading, automated risk control, and stable risk lines [12]. Evaluation Criteria - To assess the reasonableness of leverage, six criteria are proposed: 1. Clarity of risk lines 2. Ability to track trades in the market 3. Availability of public fund paths 4. Isolation of fund management 5. Correspondence of transactions with market data 6. Transparency of information without ambiguity [16][17].

Core Viewpoint - The article emphasizes that the leverage multiples offered by brokerage firms are not arbitrary but are determined by regulatory rules and risk management mechanisms, highlighting the importance of understanding the underlying structures rather than just the leverage numbers [1][5][16]. Summary by Sections Leverage Multiples - Common leverage multiples in the brokerage industry typically range from 1 to 2 times [4][6]. - Higher leverage increases the risk of systemic issues, leading to stricter regulatory controls on leverage ratios [5][10]. Types of Brokerage Structures - Traditional brokerages have fixed and lower leverage multiples due to regulatory requirements, ensuring a stable safety margin [6][10]. - Platforms using self-funding custody models offer more flexible rules, resulting in a wider range of leverage multiples [7][10]. Margin Requirements and Leverage - Margin requirements directly influence leverage: - 50% margin allows for 2 times leverage (1:1 financing) - 60% margin allows for approximately 1.67 times leverage - 70% margin allows for approximately 1.43 times leverage [8]. Risk Management Considerations - Key factors to assess the reasonableness of leverage include: - Transparency of risk thresholds - Automation of risk management actions - Isolation of user funds to ensure safety during extreme market conditions [10][12][17]. Investor Guidance - A classification for investors based on experience and risk tolerance is provided: - New investors: 1–1.5 times leverage is considered stable - Experienced traders: 1.5–2 times - Flexible strategy users: 3–5 times - High-risk strategy users: 6–10 times [13][14]. Conclusion - The article concludes that the safety structure is more critical than the leverage multiple itself, and a reasonable leverage must be supported by a secure framework [16][17].

Core Viewpoint - The article emphasizes that while many investors focus on the leverage ratio in stock trading, the more critical factors are the transparency of institutional rules, risk boundaries, and risk control thresholds [1][6]. Summary by Sections Leverage Ratios - In standard brokerage systems, financing leverage generally ranges from 1x to 2x, commonly referred to as "1:1 or 1:2" ratios [3]. - The differences in leverage ratios among institutions are primarily due to three factors: regulatory requirements for margin ratios, the size of funds, and the risk level of investors [3][4][5]. Regulatory and Institutional Factors - Most brokerages have strict regulatory frameworks that dictate lower leverage ratios, with higher regulatory stringency leading to lower leverage [3][9]. - Larger fund accounts tend to have more conservative leverage requirements to manage portfolio, sector, and systemic risks [4]. - Investor risk levels significantly influence the range of leverage that brokerages can offer [5]. Risk Management and Structural Safety - The article highlights that the key to safe leverage usage lies not in the leverage ratio itself but in three structural factors: margin ratio, financing limits, and risk control thresholds [11]. - Platforms that provide higher leverage (3-10x) often come with increased risks, and the safety of such platforms is determined by their transparency in risk management [10][12]. Practical Considerations for Investors - New investors with low risk tolerance typically use leverage ratios of 1-1.5x, while those with higher risk tolerance and experience may consider 2-5x [10]. - The article suggests that only platforms meeting specific criteria—such as transparent risk control and secure fund structures—should be considered for discussing leverage ratios [12].