Using a margin loan, clients are able to enhance their investing power, which can be an effective way to build wealth and diversify a portfolio of securities. However, Alyonani Holdings also highlights to all clients that margin loans can amplify losses as well. As such, we assist our clients in weighing both the benefits and the risks when thinking about investing using margin loans.

A margin loan is provided based on a client’s portfolio of shares, managed funds, and cash as a form of security, whereby such assets are used to calculate a loan to value ratio (LVR), to determine how much a client can borrow from Blue Gulf Capital Group. Once a borrowing limit is established, a client can use the available funds to purchase additional approved securities instruments after which the new and existing investments are combined to form the total portfolio.