Margin investing is wrong, if you can’t afford to invest it, don’t do it. Here is why they do it, they don’t have a lot of money, but the invest using margins, hoping the cost will go up, while they bought low.
This also includes Futures Markets, all of this means they are hoping to buy, gas, coal, corn, beef, ect low and hope the costs go high so the people of American have to pay more for these items while they make money.
This means the few, make money, using money they didn’t have in the first place, off the rest of us.
Definition of ‘Buying On Margin’
The purchase of an asset by paying the margin and borrowing the balance from a bank or broker. Buying on margin refers to the initial or down payment made to the broker for the asset being purchased. The collateral for the funds being borrowed is the marginable securities in the investor’s account. Before buying on margin, an investor needs to open a margin account with the broker. In the U.S., the amount of margin that must be paid for a security is regulated by the Federal Reserve Board.
There needs to be a change in regulation to bring common commodities used for everyday (gas, corn, beef) life OFF the markets..the few should not be able to control and make money off the backs of the many.