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Title: One Unforseen Aspect of ETF Post by: theonewhowaskazu on October 24, 2013, 03:13:35 AM GIGANTIC LEVERAGE
My broker will allow me to leverage with up to x4 on US ETFs & Stocks (there are liquidity constraints, but those are pretty loose) . Assuming the Winklevoss ETF falls into this category, right off the bat, I can leverage my BTC position 4 times what it normally would be. Now, you also must understand that I have other stocks in my portfolio. I can in turn use THOSE as collateral, for even MORE leverage. The amount of BTC I could potentially buy with just one fairly well-funded IRA is astounding. Wish you were an early adopter and could have exposure to thousands of coins? When this ETF launches, that's your chance. Title: Re: One Unforseen Aspect of ETF Post by: cypherdoc on October 24, 2013, 03:23:20 AM well said.
and leverage is the equivalent of a short on the USD. nice pair trade... edit: this was brought up in the IMF paper by Plassaras. |