Where does EToro have money for leverage
On any stock trade on EToro one can take up to 10X leverage. So where does the money they provide you for the leverage come from?
If it is just virtual, then when their is a bull market they must loose a lot of money and go bankrupt.
If it is real, then how is it feasible to keep such a huge pile of cash, to offer leverage to millions of accounts?
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Brokers don't lose money when they supply funds for leverage - if you borrow funds and win, you pay them back what you borrowed out of your winnings. If you borrow funds and lose, you pay them back what you've borrowed out of your own pocket.
Generally, EToro (or whatever other broker/vendor) simply has access it's own sufficiently robust line of credit, likely available to them at a lower interest rate than it charges clients.
Though, if this is a crypto thing, all bets are off so stay skeptical.
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