An In Depth Discussion About Margin

Discussion in 'Retail Brokers' started by TheBigShort, Jun 12, 2019.

  1. The advantage of a margin loan is that the holder only exposes himself to fx risk of the pnl portion. The broker loans the purchase price/margin/...and that goes back to the broker upon liquidation. The difference is exposed to fx risk. Same as a house purchase on mortgage in foreign currency. The fx risk is not applied to the house value but to the realized pnl upon sale.

     
    #11     Jun 13, 2019
  2. MARGIN TRADING A TO Z is a pretty good book. PM me if interested
     
    #12     Jun 14, 2019
  3. Advantage compared to what, being unhedged? OP is using futures to hedge his FX risk. This should give basically the same results as a margin loan shouldn't it?
     
    #13     Jun 14, 2019
  4. Dumbass.com ?
     
    #14     Jun 15, 2019