Did I say mandatory? I meant optional! You’re “free” to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!

  • NotMyOldRedditName@lemmy.world
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    2 months ago

    Anyone can buy stocks in a margin account and then borrow against it as margin, and use that margin to make more money. If you can open a brokerage account, you can do this.

    Shit can turn on you real fast though and you can lose a lot of money since you’re borrowing against the value of a fluctuating asset.

    E.g $1000 stocks let’s you buy $400 on margin, but if that $1000 becomes worth less than $700 you gotta pay back that $400, but now you gotta sell at $700 or pony up more cash and that $400 you bought is also only worth $200, so you sell $200 of your $700 and suddenly you’ve lost 50% of the value