What is Margin Lending?
Using the existing shares or cash as security, Direct Margin Lending will lend you funds, as a line of credit. As the table below shows, you can build a larger, more diversified, investment portfolio to increase your potential for wealth creation.
| Without Margin Lending | With Margin Lending | |
| Your Equity | $30,000 | $30,000 |
| Borrowed Funds | $0 | $70,000 |
| Total Investment* | $30,000 | $100,000 |
| Investment Value (30/06/2006) | $43,440 | $144,800 |
| Gross Profit | $13,440 | $44,800** |
| Return on Equity | 44.80% | 149.33% |
* Investment in Australian Stock Exchange shares valued at $22.50 on 1 July 2005 and $32.58 on 30 June 2006.
** Excluding dividends, brokerage, stamp duty, interest, fees and charges.