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Margin debt reaches record levels as retail investors borrow more

Reported · Written up by our desk · Equities

CNBC Markets reports that margin debt has surged to record levels as investors borrow more against their portfolios, including examples such as a 29-year-old investor, Hy Luu, increasing leverage to trade.

The outlet says this leverage can magnify market moves, meaning stock losses may be amplified for investors who borrow against their holdings.

CNBC Markets frames the trend as part of a broader stock borrowing binge on Wall Street, where the growing use of margin debt raises the risk that declines in underlying stocks can become larger for highly leveraged traders.

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