If you are sure about your bet, go ahead and use leverage. Just go broke if you're wrong, please. The only reason why such an extreme example as you describe would even be possible is the moral hazard of government bail-outs. The illusion of trading 10K tomatoes where only 100 exist would not last very long without this.
If you are worried about the impact of highly leveraged trading on the plight of the common man I suggest you address the root cause of the problem which is not the traders who take advantage of incentives given, but the governmental entities providing said incentives.
And please, if your suggestion involves "fixing the rules via governmental entities" don't even bother replying.
Ok I won't bother replying you. If you're a totally pro "liberal market" we probably have nothing more to say indeed. Just open your eyes and look at the world and what liberalism and capitalism without control has brought us in the last decade.
But I'll answer to those who don't understand why traders are useless.
If something is exchanged 1000 times (and that's currently the case), it creates 1000 opportunities for the price to change.
And traders don' fix the "right price" they don't "help the market to find the value of things". They increase the price and take the profits.
If traders earn 1000$ from a trade, who pays the 1000$ ? You, the consumer.
I don't understand how you can't see this!
Have you ever trade? It's a sum cero game (- fees)
If you earn 1000$ it comes from other trader.
And traders don' fix the "right price" they don't "help the market to find the value of things". They increase the price and take the profits.
Long = Buy - Price increase - Sell and take profits
Short= Sell - Price decrease - Buy and take profits
If you think is cheap = Long
If you think is expensive = Short
You're helping the market to find the value trought you opinion/order/position