Sentence examples for a risk of leverage from inspiring English sources

There is a risk of leverage in a futures contract that doesn't exist in other investments to the same degree.

Anecdotal evidence has convinced him that people who don't understand the risk of leverage, people who have perhaps never lived through a bear market, are taking out second mortgages to finance their trades.

There had, after all, been a prolonged period in which markets were not turbulent and there were only profits, not losses, to be realized from taking on the additional risk of leverage.

The specific risk of leverage is the fact that traders use borrowed money to buy or sell a contract.

One way to get leverage with options, if you are willing to take the risk of leverage but not more speculative risk, is to buy in-the-money calls.

The collapse of Long-Term Capital Management in 1998 underscored the risks of leverage, and losses suffered last year by Mr. Soros appeared to reinforce the lesson.

He argues that inequality lies at the heart of the crisis, forcing average Americans to borrow money to finance their spending - "Let them eat credit" is his killer phrase - and he warned of the risks of leverage in the financial system well before the crisis broke.

Meaning we have a bonus model in which it incentivizes traders and bankers to take lots of risk, lots of leverage.

But as Dayen stresses, by diminishing the risk of excessive leverage by large banks, an activity that was a key contributor to the depth, length, and cost of the Great Recession, the tax has the potential to protect the jobs and wages of working people, not to mention the portfolios of investors.

They pooled asset-backed securities, divided the pools into risk tranches, added a dose of leverage, and then repeated the process several times over.Meanwhile, increasing computer wizardry made it possible to create a dizzying array of derivative instruments, allowing borrowers and savers to unpack and trade all manner of financial risks.

In her first speech since she was sworn in Oct. 4 as the Fed's second-highest ranking official, Janet L. Yellen acknowledged that expansionary monetary policy — holding interest rates low to stimulate the economy, as the Fed has been doing for more than two years — "could provide tinder for a buildup of leverage and excessive risk-taking in the financial system".