Margin lending in Australia vs. U.S.
- Thread starter m_f
- Start date
- Joined
- 22 March 2010
- Posts
- 39
- Reactions
- 0
Being only an ASX trader, I really can't comment about US margin lenders.
I've been trading ASX 200 stocks on margin since 2004. My general opinion about margin trading is that long term success depends on focus and knowledge of risk management.
A broker that allows you to open a margin loan account will have an online list of % leverage offered for different stocks. You would be able to borrow for most of the position for a blue chip like BHP or Commonwealth bank, but for a smaller company they'll offer less leverage. For a speculative stock outside the ASX 200 or All Ords you may have to fund the entire position.
A book that may be of interest to you on Australian lending is is 'Margin Lending Explained' by Paul & Jarrod Martin.
I've been trading ASX 200 stocks on margin since 2004. My general opinion about margin trading is that long term success depends on focus and knowledge of risk management.
A broker that allows you to open a margin loan account will have an online list of % leverage offered for different stocks. You would be able to borrow for most of the position for a blue chip like BHP or Commonwealth bank, but for a smaller company they'll offer less leverage. For a speculative stock outside the ASX 200 or All Ords you may have to fund the entire position.
A book that may be of interest to you on Australian lending is is 'Margin Lending Explained' by Paul & Jarrod Martin.
