US Traders have $1 TRILLION in Margin Debt (Patreon)

And this is even at high RATES

Can you imagine how high this will go when rates come down.

Also, a big stock market crash could lead to forced selling of assets. By the way, I only use about 10% of my available margin.

PS I use Margin.

WHAT IS MARGIN:

Imagine you own $10,000 in stocks in your brokerage account - When you have MARGIN ACTIVATED< the brokerage can lend you extra cash, like half or $5,000, using your stocks as a promise you’ll pay them back (your stock is the guarantee).

So, with $10,000 of your own stocks and $5,000 borrowed on margin, you can buy $15,000 worth of stocks. Pretty neat! But if your $10K in stocks tanks to $5K the brokerage will margin call you or sell your stocks to cover their loan.