Representing Individual Investors In Margin Trading Cases
In margin trading, there is no margin for error. Were you burned trading on margin? Did your broker advise you of the substantial risks involved in margin trading? Did your stockbroker fully explain the terms and condition of the margin agreement? Generally margin accounts are highly profitable for brokerage firms, but can be financial disaster for the unwary investor.
If you have lost serious money trading on margin, complete an online contact form for a free initial consultation about your investment losses and potential remedies against your broker. Attorney Jeff Feldman works hard to protect to protect the rights of individual investors who are harmed by illegal and improper conduct by stockbrokers and investment advisors.
Trading On Margin Is Very Risky Business — Understand The Risks
Buying stock on margin means that you are borrowing money from your investment firm to purchase stock or securities. If the stock you are using as collateral goes down, you may receive a margin call from you firm, requiring you to pay all or part of your loan with either: cash, by depositing additional securities, or by selling securities in your account. There are many risks associated with margin trading, including:
- Investors may be forced to sell stocks and securities to meet a margin call in very poor market conditions.
- Your firm can sell your securities without telling you
- You have no right to select the securities which are sold
- You have no right to an extension of time on a margin call
- Your firm can increase its margin requirements at any time and without notice
- You can lose more money than you deposit in a margin account.
Contact Lawyer Jeffrey A. Feldman Today
In general, an individual investor can lose money fast trading on margin, and may even end up owing more than was originally invested in the first place. If you have lost a significant amount of money because your broker was trading on margin, or he or she failed to explain the very significant risks of trading on margin, please complete an online contact form today.
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