Margin Accounts and Money

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frankrom
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Margin Accounts and Money

Post by frankrom » 08 Aug 2017 12:27

Hey Guys,

How do you all feel about margin accounts and using margin money?

Generally speaking borrowing on margin to buy a similar asset that generated the margin room would be a risky idea wouldn't it?

Because if the price drops you lose value on the holdings and also the margin room... it is a double hit... where as buying a completely different asset prevents the double gains and double downs...

Thoughts?

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kcowan
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Re: Margin Accounts and Money

Post by kcowan » 08 Aug 2017 17:25

I think margin money is handiest for making a purchase before you have more permanent money available. Much better to use a HELOC than margin for both the rate charged and the double hit as you mention.

It is also useful for day trading.
For the fun of it...Keith

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Peculiar_Investor
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Re: Margin Accounts and Money

Post by Peculiar_Investor » 15 Aug 2017 07:10

The OP might want to read our wiki article(s), Margin - finiki, the Canadian financial wiki and Margin account. The Further Reading sections provide links back to previous FWF topics on the matter, thus saving the efforts to search for them.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

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