- Margin trading requires an investor to be extra vigilant in monitoring his/ her margin account portfolio to ensure that the margin does not fall below the required level especially during periods of enhanced volatility.
- Use margin for a basket of stocks because it reduces the odds of a margin call triggered by a major decline in one stock.
- Assess to ensure that trading on margin is appropriate to your financial circumstances risk tolerance and financial objectives.
- Use margin for opportunity (short -term) trading because interest costs on margin debt can add up to a substantial amount and make a major dent on your profits.
- Do not leverage to the hilt. Borrow less than the maximum amount allowable in your account to avoid the risk of a margin call.
NEWS
How do you protect yourself/ manage risk associated with having an ABCSI Margin Trading account?
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2024-05-23 14:50:26