Kevin O’Leary: STAY OUT OF MARGIN!
Kevin O'Leary @kevinoleary Warning To Investors: Stay Out Of Margin!
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What does that mean?
Margin is when a brokerage lends you money to trade
If you use your own money with no loan you can hold onto stocks if they drop as long as you are confident they’ll go back up. If you’ve borrowed money the lender can force you to sell at a bad time to protect their loan leaving you with zero, or less.
Is margin and leverage the same? My friend went rich day trading using it…
Yes, the same.
No, not the same. Margin is borrowing money to buy stocks or something else. This gives you leverage.
You can buy call contracts which give you leverage but not margin.
Leverage just means exactly what it means.
You can leverage margin or options to make more money (or lose more money).
When someone says they’re leveraging or using leverage it simply means they’re using another instrument that increases exposure essentially.
this short was targeted at Jack
this is the most true kevin clip i have ever seen
Stop loss left the chat
Imma counter this argument with you shouldnt be overlevered at all margin is fucking awfull if you are buying companies on the brink of extinction
You can use margin if you understand risk management.
Like everything in life, only do things if you know what you’re doing. This dude doesnt use margin coz he doesnt know what he’s doing.
long on margin is ok. short on margin is crazy.
This makes no sense , the margin call threshold is the same . Please never trade
Long margins can and will underperform on stocks like nvidia due to volatility
Or define your risk with options spreads.
@@tonywuhooo no is not. shorting on margin u can have a far greater amount of debt. long on margin u can only have a finite amount of debt. shorting have usually 30-50% of threshold. long have a 25% threshold.
and sometimes during short squeeze and highly volitile stock and if stock gaps up in after hour or during a buy out your broker can not liquidate at the exact margin threshold cause even more margin loss and debt. i know exactly what im talking about been trading for 35 years.
@@Joe_Payne it depends on where u brought it on margin. if u brought it at 100 dollar pre split with margin. it’s extremely unlikely nvidia will fall to 100 dollar pre split since it’s now trading at 1200 dollars pre split.
dudes definitely shorted or is trying to short tesla 😂
Nope Im going to use margin. go broke or go home.
I dont understand can anyone explain it ?
What do you not understand?
i learned this the hard way
Bro he said no
yea im a trader, love margin and its completely fine to use. i assume these guys are talking about investing, which is a bit silly
idk anything but how can you lose money if you dont sell. Even if your using margin . Or are you forced to sell if a stock goes down a certain percentage
How did FTX do Kevin?
this was genius
Margin shouldn’t be slaughtering you in a correction because you shouldn’t be touching margin if you aren’t already in a correction.
No margerine, just butter.
: Do you use any margin
: “No”
: *Proceed’s anyways*