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Yield Illusions
Entry #0918
The reason a leveraged return hides the wipeout in a footnote
Leverage multiplies the advertised return in large type, while the liquidation that can erase the whole position sits quietly in a footnote nobody reads.
Novice
The hidden part
#0918
Leverage multiplies both directions. The gain is in bold; the wipeout is in the footnote, and both are equally real.