Why does this strategy state that it employs low leverage?
Not 100% sure but i think it is because markets to tend to generally trade upwards. Being short all the time means there is a higher probability of getting it wrong. Also you have to think about margin calls etc.
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Makes sense, thanks.
I was thinking in the context of the overall leverage being used being high due to being dedicated short.
If your answer is correct then I guess what they’re implying is that in dedicated short, low leverage means taking as little leverage as possible on your already leveraged positions.