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Margin Loans Margin loan simulator

Discussion in 'Finance & Banking' started by Simon Hampel, 22nd Oct, 2009.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    I'm currently doing a couple of e-Learning subjects at uni and for one, I decided to build a simulation tool to be used to help educate people about how margin loans work.

    It's a bit rough around the edges and isn't fully functional yet (you can only select one investment - the STW ASX200 index tracking ETF), and I'm still writing the documentation and educational material to go with it ... but I was hoping some of you might like to have a play and see what you think.

    Margin Loan Simulator

    Please post feedback or questions.

    By the way - every time you change a setting, it is reflected in the URL of the page, so if you want to post a link to the simulator settings you're looking at in a forum post, we will be able to see pretty much exactly what you see by clicking on that link (with one limitation - if you set the period to one of "this quarter", "this financial year", "last 3 months", "last 6 months", or "last 12 months", these use the most up-to-date data available, and so they change on a daily basis as new data comes in (currently updated around 11pm).

    PS. I do intend to build a much more complex and complete version of this for Compare Funds at some point - which will include being able to simulate a portfolio of investments along with automatic investment plans and buy/sell triggers ... but that's a long way off yet.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Here's an interesting one to start with:

    Margin Loan Simulator

    ... 2008-09 financial year (ie invest on July 1, 2008) with 50% initial LVR, distributions reinvested, not capitalising interest, max 70% LVR + 10% buffer ... you would still have got a margin call in March near the bottom of the market!
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    I just fixed a bug in the way I was calculating interest for the margin loan - should be much more accurate now.