Core Viewpoint - The leverage in brokerage financing is determined by the regulatory framework rather than the leverage itself being the primary concern [1][3][6] Group 1: Brokerage Financing Structure - Traditional brokerages, such as CITIC Securities and Hengxin Securities, have a leverage range typically between 1 to 2 times due to the "margin system" constraints [3][9] - If leverage appears to be 3 times, 5 times, or even 10 times, it is likely from a different structure, not under traditional brokerage financing [4][6] - The margin requirements directly influence the leverage: 50% margin leads to 2 times leverage, 60% margin to 1.67 times, and 70% margin to 1.43 times [7] Group 2: Risk Management in Different Structures - The real risk in higher leverage structures comes from the adequacy of drawdown space and the transparency of risk control lines [10][12] - Automated risk control is essential for safely operating higher leverage [11][15] - The assessment of risk should consider whether the risk control line is public, whether it is automated, and if the orders are verifiable [10][12][17] Group 3: Leverage Suitability for Different Strategies - Long-term and medium-term investors are suited for 1 to 1.5 times leverage, while swing or trend strategy investors can use 1.5 to 2 times, aligning with brokerage financing [12] - High-frequency and intraday switching strategies may require 2 to 3 times leverage, but must ensure real orders and transparent risk control [13] - High-risk strategies might utilize 6 to 10 times leverage, but this significantly amplifies risk [16]

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].