do you use margin

Discussion in 'Trading' started by noob_trad3r, Sep 1, 2009.

do you use margin

  1. yes

    11 vote(s)
  2. no

    3 vote(s)
  1. Do you trade and borrow on margin? I don't like to use margin (my account is a margin account though)

    The whole borrowing thing sounds too risky.
  2. if you are trader, you gotta to use leverage. otherwise, you are just investor.
  3. wartrace


    I guess I am the only "No" vote so far. I only trade options and that gives me "leverage" without debt. I am not comfortable with debt of any kind, even for investment.
  4. whether or not to use leverage has an awful lot to do with an instrument's beta/volatility as well as whether you trade one instrument/diversigy, your trading time frame (minutes? hours? days? weeks?), and should also depend on the historical drawdowns your system takes (with a lot of fudge factor thrown in).
  5. 1) 7-1.
    2) Letting small losses turn into large losses is risky.
    3) Don't get too hung up on paying margin interest. :cool: