Dow Jones Industrial Average  10340.69 -107.24Standard & Poors 500  1091.84 -12.67Nasdaq 100  1856.5 -13.81Crude Oil ( Light Sweet )  73.8 -0.29Gold  1256.08 -0.55Silver  19.8588 -0.01Cocoa  2722 -50Corn  464.5 -2Coffee  192.3 5.35Live Cattle  96.85 0.5Orange Juice ( Frozen Concentrate )  138.55 2.15Soybeans  1051.75 -0.25Heating Oil  206.35 -1.08Wheat  732 -3.25Natural Gas  3.886 0.034Cotton  91.32 0.37Sugar  21.45 0.85VIX  23.8 2.49

Using Margin Lending

CWA Global Markets offers margin lending facilities (subject to credit approval) through Australia’s leading margin lenders, including Leveraged Equities (a subsidiary of Adelaide Bank).

Margin lending can facilitate higher returns in the share market through the use of gearing, enabling an investor to leverage their initial capital outlay. Margin lending occurs when a financial institution accepts shares as security against a loan used to purchase shares.
 
Margin lenders have predetermined maximum percentages they will lend against shares traded on the ASX. For example, a margin lender might lend up to 70% on BHP shares.
 
This means an investor is able to buy $100,000 worth of BHP shares after funding the share position with only $30,000 in capital. The investor is able to borrow $70,000 ($100,000 x 70%) from the margin lender by providing the BHP shares as security. The investor pays interest on the loan amount for the period the balance is outstanding. Interest payments are generally tax deductible.
 
When the share price increases, the investor benefits from a $100,000 position increasing instead of a $30,000 position. However, should the share price fall, the investor experiences a loss on a $100,000 position instead of a $30,000 position.
 
Margin lending allows investors to diversify their holdings and/or increase their exposures. Margin loans can be secured against existing share holdings as well as intended share purchases.
 
Learn more about margin lending today
 
Talk to an advisor; not a platform!
 
Start talking today! Click here to arrange an obligation free discussion and to receive our information and account opening package.
 

Please note that trading involves risk. The material provided herein is for general information purposes only and does not take into account your personal financial circumstances or needs. Please ensure you obtain and read the relevant Financial Services Guide/s and/or Product Disclosure Statement/s prior to transacting in the products or markets referred to herein.
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