If you have some equity in a brokerage account, you can apply for a margin account. Generally, you can borrow up to 50% of the value of your account to invest. In the 90′s, I signed up for a margin account because everyone I knew was making a bunch of money from tech stocks. It was great for a couple of years and paying interest wasn’t a big deal when the stocks were doing well. Once the dot com bubble popped though, the margin call came in. If the value of your account is not enough to cover your margin position, you have to add more money to your account or else your stock position would be sold. This locks in your loss and drives the market down further. So I learned my lesson and stayed away from the margin account ever since.
Subscribe to:
Post Comments (Atom)
Popular Posts
-
Central Bank of Libya مصرف ليبيا المركزي Headquarters Tripoli Established 1956 Central bank of Libya Currency Libyan dinar ISO 4217 Code L...
-
സ്ത്രീകള്ക്കും ആസ്വദിക്കാം സ്വയംരതി..... സ്വയം ആനന്ദിക്കാന് കഴിയുന്നത് മഹാഭാഗ്യമാണ്. സ്വയം ശരീരത്തിനെയും മനസിനെയും സന്തോഷിപ്പിക്കാന് ക...
-
Its a miniature museum of ancient goan village life.The chief attraction of this open air museum is the "Legend of the Big Foot"....
-
Agence de Voyage et Tourism Avenue des Mille Collines Phone Contacts: +250 252501388 Email: oida56@ahoo.com Cite Tours & Travel Phone Co...
-
Lake Malawi, which is also known as Lake Nyassa in some of its housing countries. The lake is shared by several countries. It is a rift for...
-
The long distance view of the water falls diverted the tourist's attraction from the monkeys. She reaches here after travelling many kil...
-
The original plan of the town was laid out by the Lusignans, but when the Venetians took over in 1489 they completely renovated the enclosi...
-
The typical radiation doses associated with some common imaging tests are shown below. Remember, the annual dose we all receive from backgro...
-
This is the Great Blue Hole of Belize, It is believed that this hole is the world’s largest sea-hole.
-
A night view of Grand Palace of Thailand The Grand Palace is a palace of jewels and gold, which became one of the first splendor in Thailand...
No comments:
Post a Comment