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> do most investors really take out margin loans to buy stocks? In the scenario I describe, those investors take margin loans to long or short crypto, and when
by netheril96 4y ago
> do most investors really take out margin loans to buy stocks?
In the scenario I describe, those investors take margin loans to long or short crypto, and when they fail, they sell other assets to cover themselves.
This is just one possibility I describe.
> but i'd imagine it's not a majority.
No one knows. It may take only one institutional investor who lost a gigantic amount of money in crypto trading and were therefore forced to sell stocks to shake the stock market.