Tag: leverage

Does this crash make a case for variable Margin Lending rates?

There have been umpteen opinions on how margin trading can make or break people’s trading careers. While for some traders (typically with deep pockets), margin trading is a way of life, trading on margin has also been suicidal for many an amateur trader. The China stock market crash was the latest example of what over-leveraged margin trading can lead to – what with “grandmas, cab drivers, college kids using mobile apps for margin trading”!

As far as our US markets are concerned, a quick look through most brokers’ margin account rates reveals that everyone offers lending rate slabs basis the size of account you hold with them. No surprisingly, Continue Reading…