Review Topics
Practice Exams
No one's got a neck quite as thick as Gaston...except for buffalo. Every last inch is covered in hair? We got that, too.

The Downside of Margins

Dashboard > Chapter 10: Trading on Margin > The Downside of Margins

The Downside of Margins

When Things Go Awry: When Bad Things Happen to Margined People

Margin accounts are for big boys and girls, no tears. And while brokerages rarely lose money on margin accounts, clients lose all the time because they are forced to sell (or buy, in a short margin account) when the market turns against them. In the case where the S&P is at 1,500 and the client has made a 50% margin bet that the S&P will go up, should the S&P drop 5%, the client would be forced to sell shares until the proceeds...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

Next: Soliciting  
  Prev: Margin Account Administration

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.