Supposing you are limited to retail trading only, through your basic trading app. The products you could access are retail, exchange-traded ones (no OTC, structured products, hedge fund [...]). What would you get? If you wish to maximize your profits, subject to your own risk aversion profile Had been thinking of overnight bond / lending products but could not find something convincing (yet), specifically exchange-traded. Bond ETF perhaps? Please provide your idea in the comments, unsure whether a poll makes sense as I am more interested in the thought process (if any) Assumptions: (i) your settlement currency is still worth something even with infinite leverage (ii) You would have to repay your losses (iii) for the sake of the argument, once you go broke, you cannot re-leverage at infinite, such that the « game » stops (iv) Reasoning with « big » numbers are preferred as infinite breaks everything: you would incur infinite transaction cost buying to assets with infinite prices, am I correct? Edge case from: https://www.bloomberg.com/news/articles/2019-11-05/robinhood-has-a-glitch-that-gives-traders-infinite-leverage #investments
If it's truly infinite, nothing prevents you YOLO and if you fail do 2xYOLO then 4xYOLO etc.
Lets say that if you’re going broke, you would have to repay Although, following your logic, for huge (not infinite) numbers, you could indeed 2xYOLO etc until it pays out Interesting one However for infinite, 2x infinite still is infinite
Infinite leverage and you pump and dump
The trend is your friend. Buy the fucking dip. Buy the rumor, sell the news. It literally can’t go tits up.
Do I have to pay for the loss if I made a bad bet? Or can I keep double downing till I win and then quit?
Hmm yeah, the additional assumption would be that you would have to pay for the loss From further articles on people who used huge leverage glitch via robinhood, the app figured that out due to their losses Then the user and robinhood had a private agreement
If you have to pay for the loss then leverage doesn't matter.