Margin Account for stoozing?

Nebulous2

abz88 wrote: »

Because borrowing money on a 0% interest card that has a high interest once the 0% period runs out (usually 20-28 months these days) and making a short term market bet is not really stoozing, but closer to gambling. You risk not only losing your money on stock markets (even if you go with low risk index trackers these are long term investments due to market short term volatility) but then have a large some of money earning daily interest if you cannot get a decent balance transfer card. Ben8282 isn't saying you can't do it, he's saying don't do it an call it stoozing.

And he is referring to the MSE definition of stoozing, "The most important thing is that you put it somewhere with 'easy access' meaning you can withdraw the cash whenever you need it and clear the debt."

It doesn't say that is a definition. You added 2 + 2 and got 5.

From the same article:-

"The commonly used name is 'stoozing', used to describe any technique to profit out of playing credit card companies' deals."

abz88

Nebulous2 wrote: »

It doesn't say that is a definition. You added 2 + 2 and got 5.

From the same article:-

"The commonly used name is 'stoozing', used to describe any technique to profit out of playing credit card companies' deals."

You can't profit if you invest the money and it goes down in value though.

Nebulous2

abz88 wrote: »

You can't profit if you invest the money and it goes down in value though.

My money in zopa hasn't gone down in value though!

seatbeltnoob

It's bad enough losing your own money is the stockmarket, it would be far worse to lose borrowed money where you lose money and then you have to repay the "loan"

abz88

Nebulous2 wrote: »

My money in zopa hasn't gone down in value though!

I never said you had lost money in zopa, I said that if you invest money (which is what the Margin Account requires) there is a very real chance that you will lose at least part of it which then negates the benefit of stoozing. You could be ticking along nicely to make a profit, then the day you are due to pay back your credit card the market (or just your stock picks) crash and then you have lost your money plus your are hit with interest on your outstanding balance.

Zopa is peer to peer lending, which is completely different from investing in stocks and shares.