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Margin loan simulator

 
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Old 22-10-2009, 03:57 PM   #1
Sim
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Margin loan simulator

I'm currently doing a couple of e-Learning subjects at uni and for one, I decided to build a simulation tool to be used to help educate people about how margin loans work.

It's a bit rough around the edges and isn't fully functional yet (you can only select one investment - the STW ASX200 index tracking ETF), and I'm still writing the documentation and educational material to go with it ... but I was hoping some of you might like to have a play and see what you think.

Margin Loan Simulator

Please post feedback or questions.

By the way - every time you change a setting, it is reflected in the URL of the page, so if you want to post a link to the simulator settings you're looking at in a forum post, we will be able to see pretty much exactly what you see by clicking on that link (with one limitation - if you set the period to one of "this quarter", "this financial year", "last 3 months", "last 6 months", or "last 12 months", these use the most up-to-date data available, and so they change on a daily basis as new data comes in (currently updated around 11pm).

PS. I do intend to build a much more complex and complete version of this for Compare Funds at some point - which will include being able to simulate a portfolio of investments along with automatic investment plans and buy/sell triggers ... but that's a long way off yet.
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This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
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Old 22-10-2009, 04:05 PM   #2
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Here's an interesting one to start with:

Margin Loan Simulator

... 2008-09 financial year (ie invest on July 1, 2008) with 50% initial LVR, distributions reinvested, not capitalising interest, max 70% LVR + 10% buffer ... you would still have got a margin call in March near the bottom of the market!
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Old 03-11-2009, 08:58 AM   #3
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I just fixed a bug in the way I was calculating interest for the margin loan - should be much more accurate now.
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