How does leverage increase returns until margin hikes trigger forced selling demonstrates both sides of borrowed exposure through mechanical selling. Yesterday's silver drop from $83.62 to $73.71 wasn't about fundamentals changing. It was mechanical as CME Advisory 25-393 raised margins on positions running 18x leverage. With $22,000 margin controlling $400,000 exposure, the $10 swing triggered forced liquidation in thin year-end liquidity showing leverage guillotine effect.
