Bennybbc, Margin loans are a poor product & should be avoided, if possible. Market movements force margin calls or forced selling at most times the worst possible time in the market. Whilst not encouraging inexperienced investors to borrow to invest in the sharemarket, a line of credit is far better than a margin loan, because you are responsible only for the loan repayments & receive no margin calls or forced selling. A margin loan takes away much of your control over stocks held. Regards Buffett PS Most people use credit at the wrong point in the cycle. Debt may be okay coming out of a sharemarket bottom going into a recovery, but holding debt in the top part of the cycle is a recipe for disaster. Unfortunately most investors only want to borrow in the good times, rather than the depths of despair in a market, and then should reduce debt as the sharemarket rises.
