Commit 727135

2026-05-30 17:05:50 Viraj Alankar: -/-
finance/investing.md ..
@@ 196,12 196,15 @@
Suppose you have $100k and want to leverage to 1.5 into the S&P500. You can buy $50k of SPY or equivalent, and $50k of SSO. That would give you notional exposure of $150k.
-Other examples:
+The following formula can be used to figure out how much to invest in each based on your desired leverage:
-* 1.25× exposure → 75% SPY, 25% SSO
-* 1.50× exposure → 50% SPY, 50% SSO
-* 1.75× exposure → 25% SPY, 75% SSO
-* 2.00× exposure → 100% SSO
+W = your capital
+L = desired leverage (e.g. 1.5)
+x = amount invested in SPY (1×)
+y = amount invested in SSO (2×)
+
+SPY = (2 - L)W
+SSO = (L - 1)W
### Margin loan
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9