Re:How to Prepare for a Recession
by atwebb on Friday March 18, 2022 @10:44AM
(#30722925)
Another example (I am no expert) is a margin call.
If I am purchasing using $100k of margin and my collateral drops to the point that I no longer have the margin. That 100k is gone. It wasn't a real 100k in the first place, it was leveraged and backed by a volatile asset.
If I am purchasing using $100k of margin and my collateral drops to the point that I no longer have the margin. That 100k is gone. It wasn't a real 100k in the first place, it was leveraged and backed by a volatile asset.