Most lenders have a LVR/MV of 75% with a buffer of 5%.
I've found that I was only geared 65% a few weeks ago,but with this rout was close to 75% as all stocks are sold off, although I hold mostly large companies. To avoid a margin call, I've sold quite a lot of stocks. I think that you need an emergency cash fund as selling stocks does not seem to reduce this ratio. And I can't buy the cheap bargains as they appear as I don't have enough cash reserves.
Lesson learnt from this is to gear 50%-55% max, with a cash fund. Also the options (put) market seem to be very illiquid.
margin loans good bad and ugly, page-4
Add ASX (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$65.56 |
Change
-0.010(0.02%) |
Mkt cap ! $12.78B | |||
| Open | High | Low | Value | Volume |
| $65.87 | $66.00 | $65.53 | $2.249M | 34.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 33 | $65.55 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $65.59 | 136 | 5 |
View Market Depth
| Last trade - 12.22pm 11/11/2024 (20 minute delay) ? |
| ASX (ASX) Chart |