{"id":2603,"date":"2014-02-03T06:19:42","date_gmt":"2014-02-03T14:19:42","guid":{"rendered":"http:\/\/staging-prblog.paladinregistry.com\/blog\/?p=2603"},"modified":"2014-01-31T06:20:12","modified_gmt":"2014-01-31T14:20:12","slug":"understand-risks-before-margin-trading","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/wall-street\/understand-risks-before-margin-trading\/","title":{"rendered":"Understand the Risks Before Margin Trading"},"content":{"rendered":"

More and more investors appear to be investing on margin<\/a> and FINRA<\/a> (Financial Industry Regulatory Authority) is concerned that many are not aware of the risks inherent in margin trading.<\/p>\n

Many brokerage firms present the investor with standard account opening documents, where the investor must affirmatively decline margin privileges. As an investor, it is so important that you understand the risks of margin trading before opening a margin account and trading on margin. If you do not, you may find yourself facing the loss of your investments, along with a debt to the broker that exceeds the money in your margin account.\"\"<\/strong><\/p>\n

FINRA correctly recommends that you keep in mind and understand the following risk factors before<\/i><\/strong> trading on margin.<\/p>\n

1.\u00a0 Your brokerage firm can force the sale of securities in your accounts to meet a margin call.<\/p>\n

2.\u00a0 Your brokerage firm can sell your securities without contacting you.<\/p>\n

3.\u00a0 You are not entitled to choose which securities or other assets in your accounts are sold.<\/p>\n

4.\u00a0 Your brokerage firm can increase its margin requirements at any time and is not required to provide you with advance notice.<\/p>\n

5.\u00a0 You are not entitled to an extension of time on a margin call.<\/p>\n

6.\u00a0 You can lose more money than you deposit in a margin account.<\/p>\n

For more detailed information on margin trading and the risks you may face, please read\u00a0Investing with Borrowed Funds: No “Margin” for Error from FINRA<\/a>.<\/p>\n

To learn more about Janet DeCosta, visit her site<\/em> www.jkdecosta.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

More and more investors appear to be investing on margin and FINRA (Financial Industry Regulatory Authority) is concerned that many are not aware of the risks inherent in margin trading.<\/p>\n","protected":false},"author":26,"featured_media":3040,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wall-street"],"yoast_head":"\nThe Risks of Margin Trading - Margin Trading Risks<\/title>\n<meta name=\"description\" content=\"As an investor, it is important that you understand the risks of margin trading before opening a margin account and trading on margin\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.paladinregistry.com\/blog\/wall-street\/understand-risks-before-margin-trading\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Risks of Margin Trading - 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