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And certainly you are well protected against black swan type events, even at 10x leverage...?

• paulpauper 6y ago
  it really depends on the underlying asset. short dates bond trading involves large leverage because short-term bonds tend to not move much
• smabie 6y ago
  Shit happens and even the smartest people can get fucked, just look at the LTCM blow up. So of course it's possible. It's impossible to eliminate all risk, regardless of the leverage ratio. I'm just saying that leverage isn't a reasonable proxy for risk. You have to dig deeper.
  • marvin 6y ago
    That sounds reasonable at first glance, but it would be really interesting to see a proper study of leveraged investments throughout the modern era, and their tendency to blow up compared to the volatility of what would be the reasonable alternative.
• ouid 6y ago
  if you have 10x leverage, your insurance against black swan events is to try to go 10x bankrupt.