Margin Debt Up 5.8% in February

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Margin debt is the amount of money an investor borrows from their broker via a margin account. Trading with a margin debt can magnify gains because an investor can benefit from the upside of any stock without having to invest 100%, resulting in greater profit. With that being said, trading with margin debt can also exacerbate losses because if a stock’s value were to depreciate, the investor may face a margin call and would need to come up with additional cash to reach the minimum requirement.

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The Latest Margin Data

FINRA has released new data for margin debt, now available through February. The latest debt level rose for a fourth straight month to $742.96 billion, its highest level since May 2022. Margin debt is up 5.8% month-over-month (MoM) and up 19.0% year-over-year (YoY). However, after adjusting for inflation, debt level is up 5.2% MoM and up 15.4% YoY.

www.advisorperspectives.com/dshort/updates/2024/03/22/margin-debt-up-5-8-in-february

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