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Episode 9: Cash and Margin Accounts | Canadian Investing
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In this episode, we unpack margin — borrowing against your portfolio to buy more — and the margin call that arrives when prices fall. Forced selling to meet maintenance requirements can cascade across leveraged investors at once, turning an ordinary dip into a self-reinforcing crash.
Key takeaways:
- Leverage magnifies gains and losses symmetrically — the math is unforgiving
- A margin call forces sales at the worst possible moment
- Correlated forced selling is how leverage becomes…
The skinny
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