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REDDIT

Margin Impact on major Corrections

B
Jan 20, 2026 · 15:15

Every month margin use keeps going up. I have seen a lot of commentary (bears) saying the market is over priced and the economy is weaker than the markets indicate.

If there is a trigger, will margin create a compounding drop in market prices? Or will more people come in with more margin as the price looks like a good deal.

Or as an inexperienced investor(I just hear/see buzzwords), is the biggest issue the devaluation on the dollar and I should buy something even overpriced instead of holding money in a savings account?

Margin Statistics | FINRA.org https://www.finra.org/rules-guidance/key-topics/margin-accounts/margin-statistics

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