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Leverage: No margin for error

Many Happy Returns

00:00

What Is a Margin Call?

If you dip below that maintenance margin, ye. And the maintenance margin constraint is 25 %. So at this point, the leverage can be, in theory, higher. But of course, in a falling market, this is like feeding cash into a furnace. You know, you just see your your cash just eaten up by these margin calls.

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