Thank you for the interesting insights
The main theoretical issue for me with leverage is in the case of sudden price decreases:
Lets say you put in 5K leveraged at 5:1, meaning you invested 25K in company ABC. Company ABC goes suddenly bankrupt meaning your shares are worthless. You now owe 20K to your broker.
Lets say I'm someone who doesn't have 20K to pay back because I have no clue about risk management.
Would the answer to this scenario be to invest under the name of a trust? (As far as I know, an individual cannot be sued for losses in the name of the trust??)
The Brains Trust, page-7512
-
- There are more pages in this discussion • 7,510 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add XSO (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
3,065.5 |
Change
45.100(1.49%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 3,020.4 | 3,066.6 | 3,020.4 |
| XSO (ASX) Chart |