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  • Attorneys David Meyer and Matthew Wilson have been selected to the list of Super Lawyers since 2011 and 2015 respectively.

  • Attorney David Meyer is a member of the Million Dollar Advocates Forum, an organization recognizing attorneys who have secured million dollar cases.

  • Martindale-Hubbell® Peer Review Ratings™ has recognized attorney David Meyer as an AV Preeminent® attorney in High Ethical Standing.

  • Attorneys David Meyer and Matthew Wilson have received a 10 out of 10 “Superb” rating on Avvo, calculated based on stringent and exhaustive criteria.

  • Attorney David Meyerhas been selected to the list of the Best Lawyers in America® for Mass Tort Litigation / Class Actions – Plaintiffs and Professional Malpractice Law – Plaintiffs every year since 2011.

  • Attorney David Meyer was selected as the 2015 Lawyer of the Year for Professional Malpractice Law – Plaintiffs for Columbus, OH by Best Lawyers®.

  • Meyer Wilson was ranked as a Tier 1 Best Law Firm for both Mass Tort Litigation / Class Actions – Plaintiffs and Professional Malpractice Law – Plaintiffs by U.S. News.

Margin Trading

Why does margin trading magnify the swings of my portfolio? That is a question we hear a lot from individuals who contact our law firm to determine if they have a valid claim against their brokerage firm to recover losses. When buying securities on margin, an investor borrows part of the funds needed to purchase the securities from his or her brokerage firm.

Just like a bank lends you money to purchase a home with a mortgage loan, a brokerage firm lends you money to invest against the value of securities in your portfolio. The securities in your margin account act as collateral for the loan. Margin trading has the effect of magnifying any profit or loss made on the investments.

While buying on margin carries a potential for greater reward because you are increasing your buying power, it also carries increased risk, including the potential to lose more money than was initially invested.

Just like any loan, when you buy securities on margin, you have to pay back the money you borrowed plus interest. So if the value of the securities in your portfolio decline, you haven’t just lost the amount of the decline, you must also pay back the borrowed money. The brokerage firm can force the sale of any securities in your margin account if the value falls below their margin requirements, even if it may result in completely wiping out your account and still leaving you with a loan to pay back.

As you can see, purchasing securities on margin can result in substantial losses. While some sophisticated investors with experience trading on margin understand the associated risks with this type of trading, some brokers who recommend this strategy are often less than upfront about the downside and the risks involved.

If you have lost money due to the misconduct of your account involving margin or if your broker traded in your account on margin without your permission or without properly explaining the risks of margin trading to you, you could have a claim against your broker or brokerage firm.

Contact one of our investment fraud attorneys today to discuss your potential case. Our initial consultations are free and all of our cases are handled on a contingency fee basis.

Need More Information?

Investment misconduct can be complex and confusing. That’s why we’re here to help you. Visit our Common Questions page to find in depth answers directly from our attorneys. Get More Answers
Have You Been a Victim of Investment Fraud?

You trusted your financial advisor with your money, but now you're left wondering what went wrong. If you or a loved one suffered losses because of investment misconduct, Meyer Wilson can step in and fight to recover your losses. The team of investment fraud lawyers at the firm has been helping people like you since 1999 by winning judgments, settlements and verdicts worth hundreds of millions of dollars against brokerage firms, financial advisors and banks.

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