I came to the comments to check if that was correct - I was following that definition and calculated 4:1 in my head, too. Later he uses the example of purchasi

I came to the comments to check if that was correct - I was following that definition and calculated 4:1 in my head, too. Later he uses the example of purchasing $2000 worth of ($10) stock by paying just $1000 and having the other thousand lent by the brokerage. As per his definition, $2000 in stocks (assets) minus the $1000 loan (liability) equals $1000 in equity. Then if leverage = equity/liability, in this case it turns out to be 1:1