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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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Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...

Hell, there are no rules here--we're trying to accomplish something. Thomas Alva Edison

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