+Linda Marie Salinas Hey Linda! Great stuff. We really love getting involved in classrooms. If you wanted to chat more about how we can help out your students you can shoot me an email michelle@wallstreetsurvivor.com :)
The stock market crash did not cause the great depression. The federal reserve caused the great depression. "You're right, we did it"- Ben Bernake admitting fault for the Great Depression of the fed's behalf
Wouldn't Frank have to pay more because of interest accumulated every day from borrowing the money from the broker? Please explain that part to me because I want to understand if you left out the extra payment he would have to pay or this video was just an ideal situation
I am currently taking a finance class and I have a midterm coming up. These videos have simplified everything so well, I am no longer worried about the test. Thanks for the great videos!
well you completely left out that part of you needing to pay off the interest of the loan, and that would make your gain from this whole thing even less
Sycamore you’re so right but if you don’t need the money, then the interest payments won’t matter because by the time you need the money in 10 or 15 years you should have the margin balance paid off or you can just continue using margin like a revolving door and buy on margin then pay it down and buy on margin and let the dividend stocks serve as the interest payments to reduce the balance each year.
UnboxViews Sure it is. Buy blue chip stocks that pay anywhere from 5 to 8% use margin if you need to and let the dividend income pay down the margin. As long as you don’t get on the wrong side of the margin it does work and works well.
@@thirstonhowellthebird Not true, dividends aren't enough to pay the interest of the loan, there is no free lunch so expect to pay around 10% for your loan yearly. Also, a friendly reminder that when a dividend comes due, the price of the stock falls, thus reducing your margin even more. And the interest costs must come from your margin as well. So yes this video messed up big time by not including interests, and no one uses margin to buy stock and hold for like 15 years, that's a very unlikely scenario for this technique. So yeah, it's not how it works buddy.
He borrowed from 150 when the share price was 500 The broker doesn't get more from what is borrowed outside of borrow interest cost In other words only the borrower benefits from the gain in share price not the broker
I am a student at a middle school in Cincinnati, Ohio. I would like to use your video for a project I am working on for my class. The project will require me to download and possibly edit out portions of your video. This project will be on a password restricted site so my work will only be published for my fellow classmates to see. Please respond to my reply to accept or deny my request.
My understanding is that when you borrow money from the broker, you have to pay interest and fees on what you borrow. This video left that out to simplify the explanation
Congratulations, you're good at math, but what is the formula? Let's say I have $500. I have a 4x Leverage from my broker putting me at $2,000 Day trading buying power. The stock GME @ $5 has a maintenance margin requirement of 100%. How much stock can I buy of GME? The stock AMC @ $3 has a 150% requirement How much stock can I buy of AMC. The stock RDBX @$10 has a 75% requirement. How much stock can I buy of RDBX? The stock ABC @$8 has a 25% requirement. How much stock can I buy of ABC?
I just watched four videos trying to describe this. This is the only one that made sense to me
Using this video to teach my 11th grade students about the causes of the great depression!
+Linda Marie Salinas Hey Linda! Great stuff. We really love getting involved in classrooms. If you wanted to chat more about how we can help out your students you can shoot me an email michelle@wallstreetsurvivor.com :)
The stock market crash did not cause the great depression. The federal reserve caused the great depression. "You're right, we did it"- Ben Bernake admitting fault for the Great Depression of the fed's behalf
Big government people like FRD caused the great depression
The results of the stock market crash all together is what caused the great depression.
thats not true
Wouldn't Frank have to pay more because of interest accumulated every day from borrowing the money from the broker? Please explain that part to me because I want to understand if you left out the extra payment he would have to pay or this video was just an ideal situation
I am currently taking a finance class and I have a midterm coming up. These videos have simplified everything so well, I am no longer worried about the test. Thanks for the great videos!
really? liar.
so where are you now in life ?
This helped me a lot to understand robin-hood gold.
well you completely left out that part of you needing to pay off the interest of the loan, and that would make your gain from this whole thing even less
Yes! It didn't explain the broker's incentive to lend.
Sycamore you’re so right but if you don’t need the money, then the interest payments won’t matter because by the time you need the money in 10 or 15 years you should have the margin balance paid off or you can just continue using margin like a revolving door and buy on margin then pay it down and buy on margin and let the dividend stocks serve as the interest payments to reduce the balance each year.
@@thirstonhowellthebird not how it works buddy
UnboxViews Sure it is. Buy blue chip stocks that pay anywhere from 5 to 8% use margin if you need to and let the dividend income pay down the margin. As long as you don’t get on the wrong side of the margin it does work and works well.
@@thirstonhowellthebird Not true, dividends aren't enough to pay the interest of the loan, there is no free lunch so expect to pay around 10% for your loan yearly. Also, a friendly reminder that when a dividend comes due, the price of the stock falls, thus reducing your margin even more. And the interest costs must come from your margin as well. So yes this video messed up big time by not including interests, and no one uses margin to buy stock and hold for like 15 years, that's a very unlikely scenario for this technique. So yeah, it's not how it works buddy.
Typical interest rates on margin loans?
Subject to FED interest rates? Credit score? LIBOR? etc.?
What sets the loan interest rate?
Thanks. your explanation made it very clear for me to understand this😊
Thanks I finally have a decent understanding of.. now what’s a profit margin?
what will be happen if the price of the share decrease..?
this videos are all fit to grade 11 student..and its me ..thank you
Thank YOU! This is amazing
What do you call Frank in economic terms?
just to add on, the actual return is lower after accounting for tax and cost of margin trading
the interest he has to pay the broker on the loan?
But doesn't the margin requirement at the price of 600 go up since its now 30% of 600 instead of 500?
He borrowed from 150 when the share price was 500
The broker doesn't get more from what is borrowed outside of borrow interest cost
In other words only the borrower benefits from the gain in share price not the broker
Wow, this 2 min video answered a question I've had for 2 days. Awesome!
So how do i pay the broker??
I am a student at a middle school in Cincinnati, Ohio. I would like to use your video for a project I am working on for my class. The project will require me to download and possibly edit out portions of your video. This project will be on a password restricted site so my work will only be published for my fellow classmates to see. Please respond to my reply to accept or deny my request.
+Emma Smith Hey Emma, you can email me to chat about how we can help --> michelle@wallstreetsurvivor.com
This helped me for Margin call movie...
The broker got nothing? How does the broker make money doing this?
what's in it for the broker if s/he makes $150 regardless of the price of the stock going up ?!
I'm asking myself this same question, this example does not express the incentive for the broker
My understanding is that when you borrow money from the broker, you have to pay interest and fees on what you borrow. This video left that out to simplify the explanation
tough calculations!!
what stock goes up by a hundred dollars lol?
Daundrey Belk tesla
+Daundrey Belk Amazon went up like 300 dollars this year alone
Can you usually sell at any time or only when it expires?
Anytime right for options. Futures only that particular date of if settlement
great video!
so the broker didn't make anything?
the broker takes a small percentage somewhere.
Fees and interest.
i have the same question and your answers are great
But I don't wanna buy with margin :(
then just buy stocks without paying on margin if you have enough paper with you LOL
1:13
Why go to an hour long online class when you got two minute RUclips videos
bruh usogui is hard
Please do!!
Nick Leeson
Congratulations, you're good at math, but what is the formula?
Let's say I have $500. I have a 4x Leverage from my broker putting me at $2,000 Day trading buying power.
The stock GME @ $5 has a maintenance margin requirement of 100%.
How much stock can I buy of GME?
The stock AMC @ $3 has a 150% requirement
How much stock can I buy of AMC.
The stock RDBX @$10 has a 75% requirement.
How much stock can I buy of RDBX?
The stock ABC @$8 has a 25% requirement.
How much stock can I buy of ABC?
Our writers have done a step by step to margin trading - read it here - medium.com/@palaceofcrypto/what-the-fuck-is-margin-trading-87b3274b1821
I wish Google was at 500
In 10 years, you will wish google was at 1500...
And yes, mark this comment.
Thats so scary omg
That's why Margin Buyung and Short Selling its haram in Islam #justsaying
Margin is mainly used by peasants. If you have 50k in cash, dont use it
Hope you passed :)
This seems like some real degenerate gambler type shit.
The pop tone is really annoying distracting