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The claim was that his main markets were gold and oil futures, not other derivatives. It's technically possible in those markets to earn 100x in two years, albe
by applecore 12y ago
The claim was that his main markets were gold and oil futures, not other derivatives. It's technically possible in those markets to earn 100x in two years, albeit with extreme amounts of leverage. (You may be able to borrow twenty times the amount of funds you have in your account.)
- nemanja 12y agoExactly, you are spot on. Leverage you can get either through options on the futures or margin. A high school kid from Queens wouldn't have the type of collateral and in the amounts required to get that type of leverage. Heck, he wouldn't even pass diligence process for account opening at a prime broker that could provide him with the level of leverage required. That's why I thought of options as the only way the story could maybe perhaps work. At the core, challenges with options strategies are similar regardless of whether they are credit, equity or commodity options.