Share
6,148 Posts.
lightbulb Created with Sketch. 426
clock Created with Sketch. 02/11/21
18:39
Share
Originally posted by dmaivn:
↑
You should NEVER borrow money to buy shares! If you are having a margin account, I would suggest that you downgrade it to a cash account. The whole thing about margin account is that they may allow you to buy with only 15% cash, and the broker lends you the rest. So, when the share price drops, they raise the risk and reduce the requirement for equity. For some stocks, they may require 50%-70% ... They issue margin calls and you are closed out as you don't have the cash to deposit in. Some brokers don't even issue margin calls. They just terminate your positions and you lose money.
Expand
Who said anything about borrowing money ? And thanks for the unsolicited advice on the perils of margin loans...doh !
(20min delay)