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Author Topic: Would you be interested in margin trading on GLBSE?  (Read 2010 times)
Meni Rosenfeld
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July 22, 2012, 07:07:01 PM
 #21

This is an interesting idea, but I think for the risk that the lenders are going to be taking, they would have to charge sky high interest rates. (And maybe this is feasible). There's a reason brokers don't offer margin trading on penny stocks and junk bonds.
Lending money with junk bonds as collateral (for going long on the bonds) is impossible. But lending junk bonds with money as collateral (for shorting the bonds) is safe and useful.

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July 22, 2012, 08:27:04 PM
 #22

No, I don't think it as straightforward as you think. If you treat it as an easy hobby project rather than a serious undertaking, I wouldn't trust the result enough to use it.

Hmm. The more I think about it, the more I think that you're right. This kind of undertaking is probably out of my league. Undecided

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