Description

Estimated leverage ratio (ELR) is defined as the ratio of open interest to exchange reserve.

$$ ELR=\dfrac{OI}{Reserve } $$

Functionality

In the chart settings window, the user can select the display colors and transparency of the indicator and zero line.

Indicator Graphics Settings

Access depending on the tariff

Basic	Basic	Trader	Pro
Estimated leverage ratio	-	+	+

Interpretation

The estimated leverage ratio shows how much leverage users use on average. The ELR for a derivatives exchange shows how much leverage users use on average. This information measures the sentiment of traders, whether they are taking high or low risk, and the trend of investors' overall willingness to use leverage.

<aside> 💡 High ELR: over-leveraged market - increased volatility possible. Low ELR: reduced volatility.

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Upward trend: increasing leverage

Increasing values indicate that more and more investors are assuming high leverage risk when trading derivatives.

<aside> 💡 In addition, if the ELR value is high compared to the last two days, it indicates that traders are quite confident in their positions.

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Downward trend: reducing leverage

Declining values indicate that fewer investors are taking on the risk of leverage in derivatives trading.

<aside> 💡

In addition, if the ELR value is low compared to the last two days, it indicates that traders are changing their minds or closing their positions.

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