I’m sorry, but no it will not go down to zero. This would happen only if my very conservative portfolio (with 10% cash), goes -80%, which by any means would kind of be the end of finance for everyone, my small leverage won’t really change a thing in this case.
I get that people want to warn me and everything, but again, I’m planning on having 20% leverage on a conservative portfolio, not betting everything on Red 4 times in a row. You can’t go negative with such a small leverage, worst worst case scenario the position is liquidated, the example you assume I’m following has nothing to do with my plan. I’m not planning on borrowing money from my friends, damn I am missing something or what?
Will anyone help me with answering my question or by asking I am not worthy of knowing? I have a simple question, that may seem basic. I’m very familiar with investing, but as I have not done margin investing on IB, so I am just asking for a confirmation that my assumption on how interests are accrued in the loan, that’s it! I’m sorry but it’s a bit annoying to be judged like that when taking a small calculated risk, I’m new to the forum, but that doesn’t mean I know nothing about investing. I am told that there are no stupid question, it’s only stupid not to ask, but apparently this is wrong...
There are multiple way to pay back a loan and its interest, I believe asking on how a certain loan is structured is a fair question before deciding on taking it or not.