Normal
Re: Margin Lendingstocknoobie,You ask for a comparison with a normal trading account....well this is difficult because you would be using approximately one third of portfolio size, so it would affect your buying decisions. For a direct comparison you would need to trade all the same stocks with your position size scaled down to about one third used in the margin trades.Margin loans are usually between 7.9% to 8.5%, & I have used 8.4% in the example which with the brokerage is capitalised to the loan.So therefore the additional stocks you can buy because of marginlending must cover the compounded interest bill.....in the example it is well covered.Is this the type of info that you are after ?
Re: Margin Lending
stocknoobie,
You ask for a comparison with a normal trading account....well this is difficult because you would be using approximately one third of portfolio size, so it would affect your buying decisions. For a direct comparison you would need to trade all the same stocks with your position size scaled down to about one third used in the margin trades.
Margin loans are usually between 7.9% to 8.5%, & I have used 8.4% in the example which with the brokerage is capitalised to the loan.
So therefore the additional stocks you can buy because of marginlending must cover the compounded interest bill.....in the example it is well covered.
Is this the type of info that you are after ?
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