The Loophole of Leverage! [PART 01]

If you are following me for a while, you should know that Leverage is a biggest innovation for the brokers.

Leverage is a great tool for brokers to make their profit 1000x.

This was began during early days of bucket trading.

Now you might ask, what the hack is bucket trading?

Well, to understand this, my friend, you need to know how gambling works. Like in horse racing, there are two types of gamblers. One directly bet on the horse by paying the money to the game authority. Another kind of gamblers out there who don’t pay anything to the game.

They watch the game from far, or not even watch. They just make a group of few people and bid on horses. There is a broker in the group, who takes all the money, most case he keeps all as all the bidder loses 90% of time.

Bucket trading is same. There are brokers those aren’t regulated at all. They just sits and allow people bid on various currencies and stocks. But mostly there costumers aren’t that rich. They invest (bet) very little money. So those bucket brokers invented a system called X.

They started allowing people to invest 10000$ by actually investing only 10$. They called it 1000x 10$.

When regulated brokers saw this, they thought why not we do this. They did their research and legalised this and called in Leverage. They are saying they are giving you loan along with your investment. As long as your margin remains the loan remains. Once margin is gone. The loan and real money is gone.

On the next post I’ll reveal the loophole!