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Cayman987r t1_j9dfm52 wrote

Reply to comment by Unique_Mastodon5855 in Any Bear agrees?... by jeanpaultru

Etrade offers me like 0.15% on cash so I transferred my 350k out šŸ¤·ā€ā™‚ļø. I do like I can buy t-bills with 10x leverage on Etrade though so I left 50k there

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mcarther101 t1_j9dl40e wrote

Can you explain to me how Margin T bill works? Since itā€™s practically zero risk, why not make 4% on $1M if buying power of $100k can be 10x? Am I missing something, why wouldnā€™t everyone just leverage up on buying treasury securities for guaranteed cash flow?

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Cayman987r t1_j9dlpfo wrote

Because margin isnā€™t free

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mcarther101 t1_j9dp5cs wrote

Ahh.. duh.. I just looked up margin rateā€¦ costs more than bond yields

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