We continue digging into margin by looking at how short margin accounts different from long accounts and why shorting stock presents very different kinds of risks to accounts. Want to know why some hedge funds blow up and others don’t? Start here.
Leverage is an essential part of finance, and understanding how it works can benefit traders; misunderstanding it can wipe out accounts, and often has!
To model assets properly you need to vectorize the qualitative. Sound weird? It is–but it’s also a lot of fun.
Options are hard? Not really–not when you know how to see them! Some simple rules to make complex options combinations easier can also keep you away from dangerous bets and costly mistakes.
Call and put options mess up a lot of investors–and it’s usually because they haven’t internalized the logic of stock options. It’s actually not hard!