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Surge in margin calls as All Ords falls

Discussion in 'Finance & Banking' started by Tropo, 7th Jul, 2008.

  1. Tropo

    Tropo Well-Known Member

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    07/07/08
    Surge in margin calls as All Ords falls

    CommSec made about 300 margin calls last Thursday and 10 the day before. The broker's daily average is fewer than 30. Last week was a big week for margin calls as the All Ordinaries index fell under 5000 for the first time since 1996.
    The average number of margin calls trebled in the first quarter of this year (the most recent data available).
    There were 3.85 margin calls per 1000 clients according to RBA data.

    Source: The Australian Financial Review
     
  2. Billv

    Billv Getting there

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    Tropo
    And the situation isn't looking the best today either.
    I wonder what the % would be of those who are able to meet their margin calls...
    Cheers
     
  3. Tropo

    Tropo Well-Known Member

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    Yep...
    Good question.:eek:
     
  4. austing

    austing Well-Known Member

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    Yipee,

    Hold to to your hats the rollercoaster's heading south again:D

    Cheers - Gordon
     
  5. Sacko

    Sacko Well-Known Member

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    Time buy those stocks on special....
     
  6. austing

    austing Well-Known Member

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    Yes, yes.

    Cheers
     
  7. crc_error

    crc_error The Rule of 72

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    thats true, but most people would not have money to spend due to raising LVR's!

    Prehaps if you have a cash portfolio, then you may want to consider a low level of gearing to buy these specials!
     
  8. Trogdor

    Trogdor Member

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    since 2006??
     
  9. Tropo

    Tropo Well-Known Member

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    Yeh...It’s The Australian Financial Review pen pusher's error.
    First time XAO broke up 5000 level in 2006 (23.03.06).