Somewhere in 2019, I paid back in full all my margin borrowing and transferred my share holdings back to my CDP.
I considered the possibility of a market downturn and wanted to own whatever that has been bought already in full cash. Without the burden of interest and without the stress of capital that I couldn't afford to lose.
But this article is mainly going to be this concept on share financing in a bear market.
There's a story below on retail investor loading up on debt to buy stock. If you're keen to read, click here.
Leveraging has always been aroundWhat is leverage: Quite simply, it is borrowing other people's money for your investment.
Financing charges are at all time cheap. It's true.
You can get bank balance transfer at EIR 2% (unsecured loan from credit card, probably a method in the article above).
You can get margin leverage if your shares are used as collateral
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