This is not necessarily true, you could have contracts rather than money down
Sure, but in most (all?) financial settings, this would still count as exposure.
It doesn’t matter if I bet $N on something using cash or margin, my exposure is still $N.
Since you can’t have unlimited exposure, this would still lock up capital, until the bet can be resolved.
[flagged]
Sure, but in most (all?) financial settings, this would still count as exposure.
It doesn’t matter if I bet $N on something using cash or margin, my exposure is still $N.
Since you can’t have unlimited exposure, this would still lock up capital, until the bet can be resolved.