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This is true for any brokerage account where you have margin enabled. Check your margin agreement carefully. Or better, disable margin on your brokerage account
by paulsutter 4y ago
This is true for any brokerage account where you have margin enabled. Check your margin agreement carefully. Or better, disable
margin on your brokerage account
“ people with margin accounts end up as just general creditors in any bankruptcy and recover only a fraction of their assets after some years in bankruptcy proceedings. During bankruptcy, their accounts are frozen and no transactions are allowed”
https://www.bogleheads.org/forum/viewtopic.php?t=20582 https://www.bogleheads.org/forum/viewtopic.php?t=20582
(sorry couldn’t find a better reference searching on my phone)
- ad 4y agoI'd be pretty interested to see how cash account is treated differently; I couldn't find a better reference either. But one advantage over the coinbase situation is at least the margin account falls under SIPC.