Leverage

U.S. margin debt has surged to a record $1.1 trillion, an increase of $67 billion in September alone. Despite markets at all-time highs, investors are borrowing to buy more. But behind the headline number lies a deeper question –  How much leverage can the system bear? Margin debt is the...

Charlie Munger once warned that "smart men go broke three ways: liquor, ladies and leverage." Venture capitalist Chamath Palihapitiya admits that the leverage he piled on during the pandemic bull run "almost broke" him. What Happened: Palihapitiya posted the admission on X while quoting the late...

An investor who opened a massive $517 million short position on Bitcoin (CRYPTO: BTC) with a 40x leverage closed all their trades Tuesday, profiting millions of dollars. What happened: The position was opened at an entry price of $83,898 on the perpetual trading platform Hyperliquid, and would have...

Official Melania (CRYPTO: MELANIA) dramatically spiked on Sunday after a whale opened a five-fold leveraged long position in the meme coin. What happened: The official cryptocurrency of First Lady Melania Trump jumped 6.29% over the previous day, while its trading volume more than tripled to $35...

An investor who shorted Ethereum (CRYPTO: ETH) with massive leverage is now sitting on tens of millions in unrealized profit as the market plunged following President Donald Trump’s tariff announcement. What Happened: The trader took a 50x leverage bet on ETH’s decline on...

Influential Dogecoin (CRYPTO: DOGE) figure Mishaboar has issued a warning to DOGE holders about the potential risks of leverage and derivatives in cryptocurrency, particularly in the face of expected market volatility. What Happened: On Wednesday, Mishaboar took to Twitter to caution Dogecoin...

Leverage (borrowed money) is a simple strategy so you can use a small amount of your capital (combined with the borrowed cash) to make a larger investment. It’s a convenient financing tool, but it won’t turn a bad investment into a good one. Leverage simply magnifies the outcome—...

S&P 500 companies typically boast long-maturity, fixed-rate debt structures. But recent data paints a concerning picture. Over the past year, borrowing costs for corporations surged. Goldman Sachs’ historical analysis unveils the importance of interest expenses and leverage in bolstering...

Do you know what separates the rich from the superrich? Leverage. And, no, I’m not talking about the “borrowing money to invest” kind of leverage. I’m talking about the leverage that determines how much output you get for each unit of input. For example, Elon Musk...

Marathon Digital Holdings Inc. (NASDAQ: MARA) terminated its credit facilities and repaid its term loan with Silvergate Captial Corp (NYSE: SI), resulting in a debt reduction of $50 million and an increase in unrestricted Bitcoin (CRYPTO: BTC) holdings by 3,132. The company provided Silvergate Bank...

Banking giant Citigroup (NYSE: C) considered partnering with Alameda Research, a now-bankrupt crypto trading firm, to launch a crypto lending business in 2020, but decided against it due to concerns about the firm's lack of risk management.  Austin Campbell, the former co-head of...

Over the past month, a large amount of capital has been wiped out of the crypto sector. As prices have been plunging, there has been a severe liquidity crisis across major firms and investors in the space. What Happened: As a result of major capital in-flow over 2020 and 2021, the crypto and DeFi...

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. With global supply at all-time highs and demand at record lows, the world’s most valuable commodity is at an economic crossroads....

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. We are in the midst of one of the most volatile periods in Wall Street history.  To put this period into perspective, the CBOE...

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. In 2013, Jim Cramer and Bob Lang observed that four tech stocks outperformed the overall market (when compared to the S&P 500 Index)...