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You can borrow 50% of the value of shares you own. You will usually only be allowed to borrow against blue-chip shares, not stocks in volatile small firms. Take a look at the 'Summary' page in the members area 'Trading Suite' for the minimum price a share has to trade above to fall within the margin rule. |
You will be charged a fictional interest rate of 8% P/A. Interest is calculated daily. |
Margin trading is risky, in the real world of trading the stockbroker will start calling in your debt if the value of the shares you own falls. Therefore, you may have to sell shares at low prices to cover the margin. By automatically having use of this facility in our stock games you will understand the ways of margin trading with no financial risk. |
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