Buying on Margin/ Using Leverage?

[nastynatedub]

i tried searching for this but had difficulty finding anything relevent to what im asking.

how exactly does buying on margin work? is it the same thing as using leverage? and do a lot of investors use it?

[dazraf69]

http://www.investopedia.com/universi...in/margin3.asp

I have a hard time believing that you did any research at all.

[nastynatedub]

[ QUOTE ]
http://www.investopedia.com/universi...in/margin3.asp

I have a hard time believing that you did any research at all.

[/ QUOTE ]

thanks a lot for the link...i meant i had a hard time searching for information on here (2p2).

[Shoe]

I don't buy on margin, but I do take out 0% credit card loans to buy stocks. Similar to margin, but you don't pay any interest. Of course, the 0% offers only last for around 12 months, so you need to transfer the balances after 1 year and make the minimum monthly payments each time to avoid interest. It's worth the hassle for me, but might not be for you.

[Uglyowl]

Interest rates for margin at Scottrade are 10% and above for $50K and under. I try not staying there for any length of time.

[nastynatedub]

is it worth it to use Ieverage when investing for the Iong term ( a year, 3 years, 5 years, etc.?) or is the commissions usuaIIy too high? thoughts? feeIings?

[iversonian]

[ ] Exactly the type of question that merits a 10-option poll.

[nastynatedub]

[ QUOTE ]
Interest rates for margin at Scottrade are 10% and above for $50K and under. I try not staying there for any length of time.

[/ QUOTE ]


does anyone no any better sites for margin trading w/ Iower rates?

[Jimbo]

WB offered me a 100K LOC at prime -.5% so lately I have just been using this and making electronic transfers back and forth between them and my brokerage account.

Jimbo

[ItalianFX]

nasty, I don't think you're ready to trade with margin. If you are just learning right now, don't even consider trading on margin. Work on your education first.