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Margin Accounts Coin Money For Brokerages
Why would brokerages allow for such "crazy" risk anyway? One would think that like a casino, a brokerage doesn't like to see clients unhappy, kicked out of their homes, forced to liquidate things, etc. That can't be good PR, right?
Go back to that margin interest business in the previous examples. The investor is being charged between 5% and 10% per year these days in margin interest depending on a variety of factors, mostly revolving around how much...
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