Leverage in the stock market?

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If you didn’t know margin existed until now, *do not touch margin* until you know *exactly* what you’re doing


It’s called margin. Basically, all margin does is permit you to borrow money from the brokerage which is secured by the assets in your account. As a general rule, if you have $100K in they’ll let you borrow another $100K. But… it’s not as simple as this seems. As I don’t use margin other than to prevent good-faith violations I’m not familiar with all of the details as far as margin maintenance requirements and the like. What I do know is that some securities are not marginable at some brokerages so they can’t be bought or used as collateral for margin. There are also various maintenance requirements which essentially mean that if you buy securities on margin and your portfolio subsequently loses value, the broker will issue a ‘margin call’ which means you have to deposit funds or they will sell some of your securities. And so on. Note that I’m sure a lot of the above is oversimplified and probably doesn’t quite use the right terminology. Hopefully now you know what it’s called you can do some searches and find resources to learn more about it.


Are you trying to financially ruin yourself in record time? If so I’d recommend also learning about options. I heard you can find great advice on another sub here.


Allow me to introduce hwang


It’s called margin