Margin Lending

I'm looking to invest in the stock market through margin lending and would like to know what options are available to protect my initial borrowings against a downturn in the stock market. In particular, what products are available to me?

You can choose a protected or insured loan, which typically covers periods of one-to-five years. This is where the lender agrees to return to you the full settlement of the loan if your underlying shares fall below the initial purchase price. This is particularly useful if you are concerned about a market correction and still wish to enter the stock market without using any funds of your own. For details of some of the products available, go to www.infochoice.com.au.

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Disclaimer: This is generic financial advice only. Any investment decision should be made after careful review of your individual financial situation, risk tolerance, investment objectives and time horizon. These Questions have been answered by Peter Switzer and Mark Leahy. Mark is the Managing Director of Switzer Financial Services. If your question is answered, it will be published in the Peter Switzers' Money Makeovers on Yahoo! Finance, and you will be notified by email.

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