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beating the margin call - did I do the right thing?

Discussion in 'Shares' started by vivianne, 2nd Nov, 2008.

  1. vivianne

    vivianne Member

    Joined:
    27th May, 2007
    Posts:
    9
    Location:
    Wollongong
    Hello all,
    I remain a naive margin loan investor with MQ Prime.

    I thought I would probably get a margin call on my relatively small loan, so I put a lot of cash in, and reduced the loan to about $8,000. I had already sold a lot of shares a few weeks ago , luckily with no real loss overall.
    I have no idea whether this was the best thing to do at this weird time. But I felt better at the time.

    My question is, what happens if I decide to pay off that last $8000? , If I get out of the loan altogether, should I transfer the shares via chess somewhere? Or what should I do?
    Is do nothing a good option? Should I leave the margin loan open so I can get back into it when I feel more educated and confident about it all.

    Any advice greatly welcomed.

    Viv
     
  2. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    If you pay off the loan, nothing happens. You simply have a portfolio of shares. Although, if you add more money, then you will start earning interest (at the RBA cash rate).

    I see no reason to transfer the shares. If your loan is paid up then they have no recourse to sell them (i.e. not like Opes Prime).
     
  3. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    I'd leave the margin loan open
    Is the divident covering the interest on the margin loan?