margin requirement, page-8

  1. 13,293 Posts.
    lightbulb Created with Sketch. 1234
    its actually a good way to buy.
    For example..you buy $10,000 worth of say BHP at a margin of 70%
    Which means you put in $3,000 and they lend you $7,000
    BHP rises to $12,000
    Your lending value increases to $8,400 (ie 70% of $12,000.
    The loan stays at $7000
    Therefore, that's less than $8,400 so were all good.
    So end result is you can cash in $1400 or buy more BHP shares.

 
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