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Episode 174 (Yiddish) Using Margin the Right Way – Or Destroying Your Account

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Chaim Ekstein | Git Gelt Podcast avatar
Chaim Ekstein | Git Gelt Podcast

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margin based question by the way questions text 845 5721212 questions the questions as well each thank you for all the knowledge I received from your lectures can Can you please speak about the risks involved in trading stocks and options with margin and how to avoid margin call? Thanks. So, okay. That's a bank million down payment,000 against the bargain from the bank. This is in real estate in the stock market $100,000 and the financial markets can the bank or the brokerage 50% margin,000 0. So the brokerage portfolio the brokerage interest depends which brokerage 10% well advised the worst thing with the 50%,000. So, so this is in general. This is the this is the risk trading trading stocks margin. Okay. opportunities. Push it power. Okay. So, Equities, financial assets. Security% So for them margin whatever. So got% drastic and in times recession companies can drop 50%. So the the risk is Fore situations. So this is the risk margin. So exposure as the $10,000 margin,000. You know what? shares. Okay. So 50% maybe cash but maybe shares,000 $100,000 $100,000 the So the dollar. So 1500 of margin. The bank. $37,000,000 at least help $50,000,000. So the point is at least 50% in assets in cash and stocks. So, by the way, in commercial real estate, the banks real estate exposure building, the banks 80% mortgage is 80% loan to value. This is in residential mortgages in commercial mortgages as long as 75 80% loan to value value the value position. This is in commercial real estate in the baz is in the financial markets. margin call guys bring securityable exposure in the options market in the stock market. Irresponsible margin opportunities opportunities careful It's a measure exposure and unfortunately margin checking account investments in the market actively in the market. So the market in the long term. Okay. So question energy. By the way, for them energy for them and it provided a service fin. So this is number one is a big deal. mindset. Most probably big deal invest in the S&P 500 in the short term. I'll pay off in the long term in the history of the short term is a good opportunity around the S&P 500 and over time marketity bonds savings account whatever is linked for whatever savings account in a money market account. is to fight inflation account for the highest paying savings accounts. Um Morgan Stanley of shortterm longterm S&P 500m this is in general the options market is long-term real estate. forina guilt.