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+--- Thread: Margin call selling (/showthread.php?tid=7471)
Margin call selling - jft310 - 10-08-2014
When investing in small caps stocks one should not use margin. Put your small cap stocks in a seperate account and do not use margin.
Its one thing to use margin in a large cap dividend payng account and another to use margin with small cap stocks.
I have a friend with margn calls starting today who loves margin. Its cheap he says only 1 percent. After the margin clerk sells him out again whats the real cost of that cheap 1
percent margin???
RE: Margin call selling - sydbod - 10-08-2014
The temptation is great jft. The main reason I don't do it is because we pay around 8% for the money in Australia.
For shares that are not "Blue Chip" I totally agree "When investing in small caps stocks one should not use margin. Put your small cap stocks in a seperate account and do not use margin."