What Leverage Really Does: Bigger Gains, Bigger Losses
See what leverage really does to your money, with a worked 2:1 margin example that includes interest, and how losses can go beyond what you put in.
850 University
What leverage really does, margin accounts step by step, margin calls and the interest hurdle, short selling and squeezes, leveraged and inverse ETFs, micro futures, forex, CFDs and crypto leverage in the U.S., and borrowing to invest with cards, loans or home equity and what it does to your credit.
See what leverage really does to your money, with a worked 2:1 margin example that includes interest, and how losses can go beyond what you put in.
Learn how a margin account works, step by step: the $2,000 minimum, buying power under Regulation T, how to figure your equity, the 25% maintenance floor, and the fine print.
Learn exactly when a margin call comes, how to work out your trigger price, what it takes to fix a call, why brokers can sell without asking, and how margin interest raises your break-even.
Is Leverage: Margin, Shorting and Leveraged Products free on 850 University?
Yes — 8 of 8 lessons in this course are free with an 850ai account. Watch on YouTube anytime; create a free account to take quizzes and track progress.
How many lessons are in Leverage: Margin, Shorting and Leveraged Products?
This course includes 8 short video lessons, each followed by a quiz when you learn inside the 850ai app.
Can I dispute errors on my credit report after this course?
850 University teaches the concepts; 850ai can analyze your credit report and generate dispute letters when you are ready. Start free at my850.ai/landing.
Learn the strategy here, then let 850ai analyze your credit report and generate dispute letters tailored to your accounts.
Learn how short selling works step by step: borrowing and locating shares, the 150% margin rule, borrow fees and dividends, unlimited losses, Rule 201, buy-ins, and what the SEC found about GameStop.
Learn how leveraged and inverse ETFs reset daily, why choppy markets create volatility decay, what FINRA and the SEC say about holding them, and how the 2x risk cap and single-stock funds fit in.
Learn how futures contracts work, how to read contract specs and notional value, why futures margin is a deposit and not a price, how daily settlement works, and how Section 1256 taxes futures.
Learn what's legal for everyday U.S. traders in forex, CFDs and crypto leverage: the forex leverage caps, the required profitability disclosure, why CFDs are off-limits, and where crypto perps can legally trade.
Learn the hurdle math of borrowing to invest with cards, personal loans, home equity lines and securities-backed lines, and how that borrowing can affect your utilization, payment history and credit.