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The problem is that margin requirements are extremely high. So people are unlikely to tie up that much capital. But more appropriately the market can stay irr
by tcbawo 8y ago
The problem is that margin requirements are extremely high. So people are unlikely to tie up that much capital. But more appropriately the market can stay irrational longer than you can stay solvent.
- jonknee 8y agoHigh margin might tamp demand for the Coinbase crowd, but I don't think it matters a ton to the big players who wanted to be able to short BTC. The futures market isn't a place most retail investors should be anyway.
- tcbawo 8y agoThe big players will put their money where they get the best return. They're not going to leave much money sitting in a margin account long term -- the potential relative gain is too a small.