12-27-2022, 02:20 PM
How to balance cash to assets for margin debt?
<!-- SC_OFF --><div class="md"><p>Currently, I've been buying assets slowly while sitting on heavy cash positions for collateral. My account is close to 80% cash and maybe 20% assets. The ratio is slowly starting to shift.</p> <p>What I'm doing is shorting assets like Bitcoin, and Sushiswap, while taking loans out in Tether as well. I use the Tether to diversify into assets I believe will appreciate in the near future.</p> <p>Once I think we're near the bottom I want to close my short positions, and take out loans in the weakest stablecoins to buy assets giving higher yield than my loan. On a pump I sell some of the asset to derisk my debt.</p> <p>But, once we're near the bottom I want to shift to mostly assets with minimum cash holdings. Does anyone know the appropriate ratio for cash to assets towards the bottom? Does anyone know where I could find a financial engineering paper on this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/zerophase"> /u/zerophase </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/zw0iqe/how_to_balance_cash_to_assets_for_margin_debt/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/zw0iqe/how_to_balance_cash_to_assets_for_margin_debt/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Currently, I've been buying assets slowly while sitting on heavy cash positions for collateral. My account is close to 80% cash and maybe 20% assets. The ratio is slowly starting to shift.</p> <p>What I'm doing is shorting assets like Bitcoin, and Sushiswap, while taking loans out in Tether as well. I use the Tether to diversify into assets I believe will appreciate in the near future.</p> <p>Once I think we're near the bottom I want to close my short positions, and take out loans in the weakest stablecoins to buy assets giving higher yield than my loan. On a pump I sell some of the asset to derisk my debt.</p> <p>But, once we're near the bottom I want to shift to mostly assets with minimum cash holdings. Does anyone know the appropriate ratio for cash to assets towards the bottom? Does anyone know where I could find a financial engineering paper on this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/zerophase"> /u/zerophase </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/zw0iqe/how_to_balance_cash_to_assets_for_margin_debt/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/zw0iqe/how_to_balance_cash_to_assets_for_margin_debt/">[comments]</a></span>