Margin trading carries immense risk. If your broker failed to warn you of these risks, you may be able to pursue a broker fraud claim. You could also have a claim if your broker opened a margin account without your permission. Brokers often encourage their clients to get involved in margin trading, also known as margin investing, due to the potential of increasing the return on investment.
However, since margin trading involves a loan from the brokerage firm, the risks are great, not to mention the costs. We wrote extensively about this topic in our article, Margin Investing Carries High Risks. For a free case evaluation regarding your margin trading abuse claim, contact our office by calling or filling out our online contact form.
Attorney Chad Kohler offers additional information on the risks of margin trading.