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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: carranza2 who wrote (44186)1/25/2012 8:26:23 AM
From: Real Man1 Recommendation  Read Replies (1) | Respond to of 71477
 
You are welcome. I'm by far not a genius in these
things, just experience. When you do 2x or 3x it can
burn you faster if there is no move in your direction
because of hidden margin borrowing rates. In case of levered
futures the rate is built in futures prices. So, a double edged
sword.

If someone could really lever up a treasury bond without cost,
why would not everyone get paid 3x rates? It's not possible.