Stock Trading Margin/Leverage

[TradeLikeTheWind]

whats the typical margin/leverage you can get when trading stocks?

 

[TradeLikeTheWind]

bump

 

[PZ.]

Hi. If you are asking how much can you borrow it depends on the LVR ratio for each stock as set by your broker. The big 4 banks are around 80%

 

[StockyGuy]

If you're a beginner then any leverage is something to be cautious about.

Link gives some indication of current margin loan LVRs in Aus - https://www.canstar.com.au/compare/margin-loans/?profile=Shares&loan_type=Variable&amount=100000 (click on Features tab). As you can see LVRs vary fairly widely, as do features of specific loans. You need to look at all the details closely to determine which is best for you if wanting one. The actual amount you are permitted to use may depend on your financial situation (which they review) and the specific stock(s) you want to buy.

If you're asking such a question it's almost certain you're not ready for any leverage at all, IMO. Even some very experienced traders do not use leverage.

 

[peter2]

Unlike the US brokers, Aust brokers do not provide any leverage. You'll need to have 100% of your position size available immediately or within two days.

If you want to trade ASX shares with leverage then you'll have to look at other products like equity options and cfds.

 

[tech/a]

Are you sure Pete?

https://www.bt.com.au/personal/investments/solutions/borrow-to-invest/bt-margin-loan.html

 

[jjbinks]

You can also look at commsec's margin LVR for equities

https://www.commsec.com.au/content/dam/EN/PDFs/Product/Margin-Lending/Accepted_Shares.pdf