Margin requirement fo US treasuy securities is 1% (at interactive brokers 6 month or less maturity)
100:1 because Bonds from the treasury are as good as cash.
Cash is as good as cash, isn't it?
Assuming 1/2 the small traders move offshore
This causes an outflow of US currency (to pounds or francs etc.) thus weakening the dollar
And half increase their account by 10X.
As for the enlarged accounts that money is now stagnant, not helping the economy at all. Not being spent, not being invested in production.
100:1 because Bonds from the treasury are as good as cash.
Cash is as good as cash, isn't it?
Assuming 1/2 the small traders move offshore
This causes an outflow of US currency (to pounds or francs etc.) thus weakening the dollar
And half increase their account by 10X.
As for the enlarged accounts that money is now stagnant, not helping the economy at all. Not being spent, not being invested in production.