If one leveraged position goes wrong, what happens to the others?
· 7 min read
Most explanations of leverage stop at the point where you open one position. The interesting behaviour starts at the second one.
If you are long one market and short another and the first goes badly, what happens to the second? The answer depends entirely on whether your positions share collateral — and on a unified margin account, they do. That is the whole design, and it is rarely spelled out before you use it.