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Negative leverage

• Is a concept which states that there is an opportunity cost loss associated with the purchase of an option on a future. This is due to the fact that futures can be initially margined with certain approved securities whereby the client continues to collect interest.

 
 Embedded terms in definition
 Futures
Future
Interest
Opportunity cost
Option
Purchase
Securities
 
 Related Terms
 

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Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great. - Mark Twain (1835-1910)

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