4 ms·
The house wins in lots of cases because of capital differences. You often end up in a forced sell LOW situation with leverage. Ie, market swings up and down 10%
by whoknowswhat11 5y ago
The house wins in lots of cases because of capital differences. You often end up in a forced sell LOW situation with leverage. Ie, market swings up and down 10%, then up and down 20%, at some point on a down swing if you are levered up a lot house calls you up for an extra $5B which you don't have, so they sell everything out from under you. So you can end up selling low not high in these models.