Margin Trading

Investor Claims Is What We Do - All Day, Every Day

Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
  • Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million

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.

The Meyer Wilson Way

Results-Focused Representation
  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America® for over Ten Years Running
  • David Meyer is President of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
  • Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
  • Deep Bench of Skilled Attorneys and Staff Members

TRUSTED BY OVER 1,000 INVESTORS

Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
  • “The communication throughout the process was on par - and they took the time to indulge me with the various questions and opinions.”

    - R.G.
  • “What I truly appreciated was getting a great result for my Mom with limited involvement/stress on her.”

    - S.W.
  • “We went to arbitration with the other respondent and I got to see firsthand the level of professionalism and expertise the Meyer Wilson firm can deliver.”

    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
  • “Right from the start, you had the passion and desire to win this case for us. I have never worked with an attorney or firm as compassionate as yours. I would highly recommend your firm to anyone.”

    - G.A.

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