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Sure, you get "paid", but in reality you're still out money because you had to put down more than you got paid as collateral. That collateral can disappear.
by jfrunyon 5y ago
Sure, you get "paid", but in reality you're still out money because you had to put down more than you got paid as collateral. That collateral can disappear.
- shukantpal 5y agoYou pay collateral to your broker, not the counterparty. Also, if you have margin, the broker will lend you collateral and in that case you wouldn't have put up anything from your side (apart from interest payments).