Quote:
Originally Posted by emmanuel ewumi
I have been a margin trader since June 2006 with FBN Capital,a subsidiary of First bank.It had been a profitable venture,because l was able to turn a ioan of N5 mllion naira invested in Wema bank to N20 million,because l bought it for N2.90 and some for N3.The Wema shares were sold in october 2007
for N12. After paying my broker the loan plus interest,l still made close to N14 million. I think it is high time the CBN stopped the embargo on margin trading. Government only needs to regulate it. Because margin trading takes place in all markets all over the world.Once the embargo is lifted,l think the market will become active again,since this is the time when full year results are expected.....But margin trading is not for everybody unless one understand the markrt dynamics,infact this is the best time to take position.
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yeah, margin trading is good, but remember that everything that has got positivity and be halter to show its negativity, i have also used margin from skye bank and didnt do badly with it either.
the various regulatory bodies that place a stop order on margin have all come out to either deny it or remove the stop order e.g
NSE, CSCS, SEC and even CBN.
IT IS IMPORTANT TO KNOW WHAT YOU ARE DOING BEFORE USING MARGIN FUNDS.
By the way, was lien place on your shares with FBN capital?