This trick gives an interesting way to borrow money for cheap, and I could imagine other uses for it than CD deposits.
The article gives the impression that the only use one can make of the box spread trick is to invest the proceeds in a CD. But one could as well invest them in crypto or to fix their house, etc. Now regardless of the use the borrower chooses, it’s their responsibility to make sure they can still repay it soon in case of margin call. I can think of at least 3 ways other than CDs that accomplish this.
This trick gives an interesting way to borrow money for cheap, and I could imagine other uses for it than CD deposits.
The article gives the impression that the only use one can make of the box spread trick is to invest the proceeds in a CD. But one could as well invest them in crypto or to fix their house, etc. Now regardless of the use the borrower chooses, it’s their responsibility to make sure they can still repay it soon in case of margin call. I can think of at least 3 ways other than CDs that accomplish this.