“Leverage works both ways. Geared exposure means the possibility of higher profits and the risk of greater losses.”
Manage the risks
Margin lending is about taking on extra risk to create more wealth faster. It is important that the investor has strategies in place to manage the risks of margin lending. Some of these strategies are not just for geared investors, but should apply to ungeared investing as well. The law now demands that these risks are addressed, prior to the margin loan commencing.
We look at margin lending facilities and loan to value ratios – including the types of LVRs and how to calculate these – and discuss the best ways to deal with these.
Examples are used from prominent organisations and industry experts – such as ASX, NAB Trade and MLC – to explain the concepts discussed in this course. Industry knowledge and overall comprehension is reinforced by short and independent research activities and practical scenarios presented throughout the course.
Who is this training for?
This training is a must for every person who works in retail and institutional stockbroking firms, along with newcomers to the industry. People working in other financial services organisations may also benefit and deepen their understanding of the issue.
- Concept of gearing
- Margin lending facilities
- Relevant ratios
- Margin calls
- Lending provisions
Duration: 2 hours
CPD hours: 2