Margin gives you the ability to buy stocks on borrowed money from the brokerage. The more money you invest in a stock, your risk becomes greater as well. It can be for the better or worse, but you really need to access how much you are willing to put down or stomach. *Always be careful when borrowing money.*
Presently, I have a margin account with Virtual Brokers. The current rates at Virtual Brokers is 4.5% for CAD and 4.75% for USD. Margin rates are usually competitive, since they have collateral to the amount of cash you have in the account with them.
Last month, I sold my Goldcorp stock. So at the moment, I have $4,470.37 cash sitting in my CAD account. I still don’t know what to buy on the Canadian side.
I also added a few American stocks to my portfolio on margin, but they haven’t been performing as well as I had hoped for. At the moment, Currently, I have $8,384.51 margin in my USD account. I am hoping Coke will make a turnaround soon, so I can lessen my margin load.
Current Value for USD Stocks on Margin:
Coke (KO)
2,075.99 | 1,912.00 | -163.99 | -7.90% |
Visa (V)
$4,152.49 | $4,052.83 | -$99.66 | -2.40% |
Costco (COST)
2,240.99 | 2,292.40 | +51.41 | +2.29% |
Anyways, I have been lazy and not really keep track of my overall stock portfolio. Time for me to sit down one night and make a good tracking system for all my purchases and sales of stocks for 2013.
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