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The flaw was that the early online trading systems didn't include provisions for reg-T, which stopped leverage at I think 50 percent of your balance. So, you co
by aswanson 10y ago
The flaw was that the early online trading systems didn't include provisions for reg-T, which stopped leverage at I think 50 percent of your balance. So, you could borrow hundreds of thousands of dollars worth of stock with a thousand dollar account balance. He goes into detail on it here: https://www.youtube.com/watch?v=iqUG2_cmZ6I https://www.youtube.com/watch?v=iqUG2_cmZ6I