Will a bank give you a line of credit to buy stocks?

[Darc]

Gee, a newbie Trader doesn't know Charts, doesn't know Macro or F/A. This doesn't sound like a good idea.

What do you think @destriero ?

 

[Overnight]

Here is what I wrote at first: "Ofcourse they do, as long as long as you put up collateral like your house or so". My use of the term "general" in a follow up post was incorrect and i should have maintained my stance on collateralized loans. The bank does not care what the loan is being used for when its collateralized. All specialty loans are specifically linked to the loan purpose such as a mortgage and can't be used for anything else.

So you mean like a home equity line of credit. I do not know how they approve those. Out of my league.

 

[spy]

The shorter the time frame the more it makes sense...to a degree. It will give you a High win rate with the rare massive drawdown. I think averaging can be used on intraday stuff pretty successfully as long as you have a max pain stop that you abide by.

You want to lend OP the money? Be my guest

 

[M.W.]

yes you are right, I stand corrected OP mentioned that.

Though even for unsecured loans its a mixed bag. Personal loans most likely won't get approved for investment purposes, student loans obviously not for sure, but credit card loans can definitely be used to purchase stocks. Nothing prevents someone from borrowing against his/her credit to invest in stocks.

Yes, you spoke of secured loans, and I overlooked that. But in the original post, the guy said "I'm not talking about mortgaging my house or anything."

He doesn't want to put his house up as a collateral, as you suggested. The OP is talking about an unsecured loan.

 

[ph1l]

Anyone know whether a bank will loan you money if you tell them straight up you want to buy stonks with it? I'm not talking about mortgaging my house or anything. Just I want to buy money from you and not pay you back for a long time because I want to buy stocks and, while it might take awhile, I know [5] years from now they will be much, much higher. That sort of thing.

Some people might think if you have to ask that kind of question, the answer is obviously no. But there are a few possibilities:

That one requires collateral and is normally short-term. So it's out.

This one requires strong bones and/or a high pain tolerance. It's also short-term, so it's probably not for you.


So, there is really only one possible choice:

 

[clacy]

It’s not uncommon for banks to loan money for stock purchases if you have sizable real estate equity.

 

[guest_trader_1]

In order to get a loan all you have to say is that you are 75% wrong on your predictions, so you need extra money to keep it going.

They will understand.

 

[zghorner]

You want to lend OP the money? Be my guest

I would rather give my toaster swimming lessons in the bathtub than loan OP money to trade.

 

[schizo]

Anyone know whether a bank will loan you money if you tell them straight up you want to buy stonks with it?

Ya might as well tell them you're heading out to Vegas and you need some dough to gamble with. Oh, and don't forget to mention you only fly first class.

 

[xandman]

I still got some buying power, but if we go down much further I won't be able to put any more money in stonks. And the lower I go, the more I want to buy!

Anyone know whether a bank will loan you money if you tell them straight up you want to buy stonks with it? I'm not talking about mortgaging my house or anything. Just I want to buy money from you and not pay you back for a long time because I want to buy stocks and, while it might take awhile, I know [5] years from now they will be much, much higher. That sort of thing.

Thanks.

A bank is gagging to give you an unsecured line, if your credit is good. You can tell them you are buying hookers and blow if you want. You'll give the bored underwriters a good laugh.

But why bother? You get a better rate with broker margin regardless of credit. Even if you do a bank loan secured with stock.

It's a silly question.