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The Risks of Leverage in a Linear Product
Imran: When you take a leverage position on an asset in a futures account, or a spread betting account or something like that, and you have to post a certain amount margin, there can be freak events. It doesn't actually trade at the level where you might have a stop loss put in there, which you think is your safety cushion. So my account balance is left completely untouched and unscathed basically," he says.