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Topic | Stock Topic 22 |
Lopen 02/24/21 10:55:14 AM #398: | red sox 777 posted... I'm sort of confused. If you have cash, why pay margin interest instead of using it in the first place? Keeping the cash in a bank account and paying interest for the margin loan seems strictly worse. Cash from your checking account you'd use for your bills, cash in the form of a loan you get spur of the moment Cash doesn't mean just sitting on something in a savings account. I guess if the question is "put literally 100% of your liquid worth into the stock market and then 10% margin on top of that" yeah that's not necessarily smart but I'd say the problem there is you putting 100% of your liquid worth into the stock market to begin with as much as danger of your 10% margin call eating you alive. You should always have some sort of emergency line to tap that isn't a stock in case you're in a position where you don't want to sell anything when you need some money --- No problem! This is a cute and pop genocide of love! ... Copied to Clipboard! |
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