Economy
Margin calls violently liquidate leveraged portfolios
HERE’S THE INTERESTING PART
Borrowing capital to buy stocks is an absolutely flawless maneuver right up until the math turns against you. When heavily leveraged investments drop in value, brokerages issue terrifying margin calls, demanding an immediate, massive capital deposit, and if the investor cannot pay up instantly, the broker violently auto-liquidates their entire portfolio without hesitation.
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