{"id":10559,"date":"2022-04-15T11:39:08","date_gmt":"2022-04-15T15:39:08","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=10559"},"modified":"2022-04-15T11:39:08","modified_gmt":"2022-04-15T15:39:08","slug":"did-your-financial-advisor-recommend-a-margin-loan","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/","title":{"rendered":"Did Your Financial Advisor Recommend A Margin Loan?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-10205 size-full\" src=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg\" alt=\"We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding what they\u2019re getting themselves into, only to discover they\u2019ve lost money. While financial advisors frequently fail to properly explain the cost of buying on margin, wall street makes massive profits off of these loans. In a recent investor bulletin, the SEC discussed interest on margin loans for investors who use them.  How Margin Works  A margin account can potentially increase the amount that an investor can use to purchase securities, with the potential for increased returns or bigger losses. If the price of the security you purchased on margin decreases, you could lose more than you invested. You\u2019ll then be required to put money into your account to cover the losses, known as a \u201cmargin call,\u201d or your broker may just sell the securities to cover the losses. That\u2019s why purchasing on margin is a much riskier form of investment. \u00a0\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg 300w, https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall-180x120.jpg 180w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>We\u2019ve discussed <a href=\"https:\/\/www.silverlaw.com\/blog\/margin-calls-dangers-high-risk\/\" target=\"_blank\">the risks of margin calls<\/a> in previous blog posts. Many investors <a href=\"https:\/\/www.silverlaw.com\/blog\/margin-account-guidelines\/\" target=\"_blank\">go into an arrangement for margin calls<\/a> without completely understanding what they\u2019re getting themselves into, only to discover they\u2019ve lost money. While financial advisors frequently fail to properly explain the cost of buying on margin, wall street makes massive profits off of these loans.  <a href=\"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#more-10559\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding what they\u2019re getting themselves into, only to discover they\u2019ve lost money. While financial advisors frequently fail to properly explain the cost of buying on margin, wall street makes massive profits off of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[606],"tags":[],"class_list":["post-10559","post","type-post","status-publish","format-standard","hentry","category-margin"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Did Your Financial Advisor Recommend A Margin Loan? &#8212; Securities Arbitration Lawyers Blog &#8212; April 15, 2022<\/title>\n<meta name=\"description\" content=\"We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding &#8212; April 15, 2022\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Did Your Financial Advisor Recommend A Margin Loan? &#8212; Securities Arbitration Lawyers Blog &#8212; April 15, 2022\" \/>\n<meta name=\"twitter:description\" content=\"We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding &#8212; April 15, 2022\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Silver Law Group\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Did Your Financial Advisor Recommend A Margin Loan? &#8212; Securities Arbitration Lawyers Blog &#8212; April 15, 2022","description":"We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding &#8212; April 15, 2022","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/","twitter_card":"summary_large_image","twitter_title":"Did Your Financial Advisor Recommend A Margin Loan? &#8212; Securities Arbitration Lawyers Blog &#8212; April 15, 2022","twitter_description":"We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding &#8212; April 15, 2022","twitter_image":"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#article","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/"},"author":{"name":"Silver Law Group","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"headline":"Did Your Financial Advisor Recommend A Margin Loan?","datePublished":"2022-04-15T15:39:08+00:00","mainEntityOfPage":{"@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/"},"wordCount":749,"image":{"@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#primaryimage"},"thumbnailUrl":"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg","articleSection":["Margin"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/","url":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/","name":"Did Your Financial Advisor Recommend A Margin Loan? &#8212; Securities Arbitration Lawyers Blog &#8212; April 15, 2022","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#primaryimage"},"image":{"@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#primaryimage"},"thumbnailUrl":"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg","datePublished":"2022-04-15T15:39:08+00:00","author":{"@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"description":"We\u2019ve discussed the risks of margin calls in previous blog posts. Many investors go into an arrangement for margin calls without completely understanding &#8212; April 15, 2022","breadcrumb":{"@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#primaryimage","url":"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg","contentUrl":"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg","width":300,"height":200},{"@type":"BreadcrumbList","@id":"https:\/\/www.silverlaw.com\/blog\/did-your-financial-advisor-recommend-a-margin-loan\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.silverlaw.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Did Your Financial Advisor Recommend A Margin Loan?"}]},{"@type":"WebSite","@id":"https:\/\/www.silverlaw.com\/blog\/#website","url":"https:\/\/www.silverlaw.com\/blog\/","name":"Securities Arbitration Lawyers Blog","description":"Published by Securities Arbitration Lawyers \u2014 Silver Law Group","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.silverlaw.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752","name":"Silver Law Group","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9eb0a691642ae95c68ee1c45b5f50f35bae76a41f3d9f861c7bfd40c87661746?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9eb0a691642ae95c68ee1c45b5f50f35bae76a41f3d9f861c7bfd40c87661746?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9eb0a691642ae95c68ee1c45b5f50f35bae76a41f3d9f861c7bfd40c87661746?s=96&d=mm&r=g","caption":"Silver Law Group"}}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts\/10559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/comments?post=10559"}],"version-history":[{"count":1,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts\/10559\/revisions"}],"predecessor-version":[{"id":10560,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/posts\/10559\/revisions\/10560"}],"wp:attachment":[{"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/media?parent=10559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/categories?post=10559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.silverlaw.com\/blog\/wp-json\/wp\/v2\/tags?post=10559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}