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Re: Margin Lending

Leveraged trading is not for the complete novice,here I agree with TREE.
The other 2 points of Tree's are opinion with some truth to both.
But--

Ive traded Margin for 4 years and have found it a hassel free way to leverage positions.
Firstly you will only be able to trade stocks listed on the lenders Margin List.
Loan Ratios will vary from 45% to 75% on average--meaning that any one stock of a 75% lending ration can only carry 75% of your total portfolio.
Lending Ratios are never a problem with a portfolio of 10 stocks equally weighted.
Interest rates vary and are a few points cheaper paid up front (I dont ).
Interest is calculated only on the funds used when they are used.
EG you have 50K as security and have 50K of Stock trading---with the ability to buy another 70K on margin.
Currently you would not be paying interest and would only pay the interest on funds over the 50K on a daily rate while they were used.

Your lender will have a minimum level they will allow your portfolio to fall to and if it does you will get a call from your broker (A Margin Call),so lets say your portfolio has fallen 22% and your call level is 20% you will be asked to make good the 2% and the 5% buffer. You can either pay cash----or sell some stock,hock the mother in law,or walk the streets may work for some!!
To bring your account in order.

I use BT (Bankers Trust) and St George. both have net sites.
Unlike Tree I find Trading Margin excellent for my form of longterm trading.
Find a good broker---I'm currently looking at Morrisons as I'm sick of paying $100s in and out of trades from brokers,who simply place a trade.

Margin Lending Explained Paul and Jorrod Martin ISBN0 701636440 is a good read.
Mastering Risk Mike Lally ISBN 0 7016 3667 X is also a must read for you.

Think minimum margin capital is $15,000.

<blockquote data-quote="tech/a" data-source="post: 25268" data-attributes="member: 257">Re: Margin LendingLeveraged trading is not for the complete novice,here I agree with TREE.The other 2 points of Tree&#039;s are opinion with some truth to both.But--Ive traded Margin for 4 years and have found it a hassel free way to leverage positions.Firstly you will only be able to trade stocks listed on the lenders Margin List.Loan Ratios will vary from 45% to 75% on average--meaning that any one stock of a 75% lending ration can only carry 75% of your total portfolio.Lending Ratios are never a problem with a portfolio of 10 stocks equally weighted.Interest rates vary and are a few points cheaper paid up front (I dont ).Interest is calculated only on the funds used when they are used.EG you have 50K as security and have 50K of Stock trading---with the ability to buy another 70K on margin.Currently you would not be paying interest and would only pay the interest on funds over the 50K on a daily rate while they were used.Your lender will have a minimum level they will allow your portfolio to fall to and if it does you will get a call from your broker (A Margin Call),so lets say your portfolio has fallen 22% and your call level is 20% you will be asked to make good the 2% and the 5% buffer. You can either pay cash----or sell some stock,hock the mother in law,or walk the streets may work for some!!To bring your account in order.I use BT (Bankers Trust) and St George. both have net sites.Unlike Tree I find Trading Margin excellent for my form of longterm trading.Find a good broker---I&#039;m currently looking at Morrisons as I&#039;m sick of paying $100s in and out of trades from brokers,who simply place a trade.Margin Lending Explained Paul and Jorrod Martin ISBN0 701636440 is a good read.Mastering Risk Mike Lally ISBN 0 7016 3667 X is also a must read for you.Think minimum margin capital is $15,000.</blockquote>

[QUOTE="tech/a, post: 25268, member: 257"] [b]Re: Margin Lending[/b] Leveraged trading is not for the complete novice,here I agree with TREE. The other 2 points of Tree's are opinion with some truth to both. But-- Ive traded Margin for 4 years and have found it a hassel free way to leverage positions. Firstly you will only be able to trade stocks listed on the lenders Margin List. Loan Ratios will vary from 45% to 75% on average--meaning that any one stock of a 75% lending ration can only carry 75% of your total portfolio. Lending Ratios are never a problem with a portfolio of 10 stocks equally weighted. Interest rates vary and are a few points cheaper paid up front (I dont ). Interest is calculated only on the funds used when they are used. EG you have 50K as security and have 50K of Stock trading---with the ability to buy another 70K on margin. Currently you would not be paying interest and would only pay the interest on funds over the 50K on a daily rate while they were used. Your lender will have a minimum level they will allow your portfolio to fall to and if it does you will get a call from your broker (A Margin Call),so lets say your portfolio has fallen 22% and your call level is 20% you will be asked to make good the 2% and the 5% buffer. You can either pay cash----or sell some stock,hock the mother in law,or walk the streets may work for some!! To bring your account in order. I use BT (Bankers Trust) and St George. both have net sites. Unlike Tree I find Trading Margin excellent for my form of longterm trading. Find a good broker---I'm currently looking at Morrisons as I'm sick of paying $100s in and out of trades from brokers,who simply place a trade. [B]Margin Lending Explained Paul and Jorrod Martin ISBN0 701636440 is a good read. Mastering Risk Mike Lally ISBN 0 7016 3667 X is also a must read for you.[/B] Think minimum margin capital is $15,000. [/QUOTE]

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