Margin Balances Suggests Risks Are Building

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Feb. 23, 2025 3:23 AM ETACTV, AFMC, AFSM, ARKK, AVUV, BAPR, IVOO, IVOV, IVV, IVW, IWC, IWM, IWN, IWO, IWP, IWR, IWS, IYY, QQQ, SPLV, SPMD, SPMO, SPMV, SPSM, SPUS, SPUU, SPVM, SPVU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SPYD, SPYG, SPYV, SPYX, SQEW, SQLV, SSO, SSPY, SVAL, SYLD, TMDV, TPHD, TPLC, TPSC, UAUG, UJAN, UMAR, UMAY, UOCT, UPRO, USMC, USMF, USVM, MAGSLance RobertsInvesting Group Leader(21min)SummaryFriday was also an options expiration event, which added to the selling pressure in the market when the virus news hit.When investors buy stocks on margin, they must deposit an initial amount, typically 50% of the purchase price per Regulation T set by the Federal Reserve.While the increase in margin balances is alarming, it is even more concerning when we remember that retail investors are also piling into leverage ETFs and options at a frightening pace.