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

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by vivianne, 2nd Nov, 2008.

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  1. vivianne

    vivianne Member

    Joined:
    1st Jul, 2015
    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:
    1st Jul, 2015
    Posts:
    268
    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 Well-Known Member

    Joined:
    19th Jun, 2015
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    Location:
    Sydney
    I'd leave the margin loan open
    Is the divident covering the interest on the margin loan?