margin trading accounts
anyone here using margin accounts ? how do you hold your hourses when market moves south ? i feel it is basically a rip off when there is an interest of >= 5% i agree there could be great returns with greater risks. I feel it is basically a rip-off to pay a 5% interest and then tax on profits which eats away net profits. Also in case of downward movement some end up selling in loss to limit the loss in addition to margin interests. What are your opinions ? i try to stay away from margins. tc 190k
Free money. Why not?
Do know that your margin account means that if the brokerage goes belly up, you lose all your assets in arbitration to higher grade debtors and you won't be covered by SIPC. That's why is important to have your margin "casino andplay money" account SEPARATE from your retirement and principal accounts!
Thanks. Newbie question: my Vanguard account has margin*. If Vanguard goes upside down and I am not using any margin, does that mean they can come after my assets?
unless youve got a big dong, stay away from margin