Excessive Margin Broker Trading Attorneys
Excessive use of margin refers to a situation where you buy a stock partially with your own money and partially with borrowed money from your brokerage firm. When an investor borrows money from the brokerage firm a margin account is opened, and the stock you buy becomes the collateral for the loan.
Using margin to buy stocks is a very risky proposition because, if the stock loses value and your account reaches a low enough level, you could be forced to sell out at the least advantageous time. So, you could lose all of the money you put in as well as your having to repay the loan plus interest.
Another issue that frequently arises in these cases is how much money you need to make on the deal to break even. When you consider the commissions and interest on the loan, the stocks will need to perform at an extremely high level before you make any money.
Working to Protect Your Interests
Buying stocks on margin is not for everyone. Brokers need to be mindful of an investor’s risk tolerance, investment goals and financial situation before recommending this type of investing. If you have lost money buying stocks on margin following your broker’s recommendation, the Florida excessive use of margin lawyers at the law firm of Sonn Law Group can help.
Our attorneys have handled a wide variety of these cases, and we work tirelessly to see that you receive full restitution for the losses you have suffered. It is the responsibility of the broker to fully explain the risks of trading on margin and to ensure that this type of investing is suitable for your needs. We have been involved in many cases where margin trading was clearly not the right fit for the investor, but the broker still recommended it.
Call for a Free Consultation
Contact our office today to discuss your excessive use of margin case. You can reach us by phone at 844-689-5754 or via e-mail. We take every case on a contingency basis, which means we don’t collect a fee unless we make a financial recovery for you.*
Under Florida Bar rules, we are not able to discuss our past results on this website. If you would like to learn more about our previous cases, please contact us for additional information.
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*Client will be responsible for costs and expenses.