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> could short 30% of the float in GME, and it'd still only be 2% of their portfolio That would be true if it wasn't for leverage. When using portfolio marginin
by coliveira 6y ago
> could short 30% of the float in GME, and it'd still only be 2% of their portfolio
That would be true if it wasn't for leverage. When using portfolio margining, the leverage is huge. So a relatively small change in the stock will result in large losses. Now, you're right that this is not going to break a fund like Citadel, but not all hedge funds are that huge.