CVI 0.00% 0.3¢ cvi energy corporation limited

we may now who martis is, page-109

  1. 15,276 Posts.
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    budgettrader...

    They are leveraged positions...

    AZA for example...

    Assume $100k to start with and an LV of 35%, our $100k turns into $285K in the market, $185k of which is borrowed money.

    Buy $285k of AZA at say $1.25 av, you get 228k shares

    At $1.83 you now have $417k worth of stock...but remember, $185k is borrowed.

    This means your net position is now $232K...or 132% more than what you started with.

    Deduct costs for trades, daily interest repayments on the borrowed money, etc...add retruns for intra-day and daily swing trading...and you get a final return close to 140%.

    Cheers!
 
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