No. Each month, if you do not deposit funds in order to repay some of the balance on your Portfolio Line of Credit, your monthly interest charge will just be added to your outstanding balance.
All investing involves risk, including the loss of your principal investment(s), and past performance does not guarantee future results. Margin lending can add to these risks, and investors should carefully review those risks as part of their overall financial strategy. Diversification strategies do not guarantee a profit or protect against loss in declining markets. Learn more about Portfolio Line of Credit in the Margin Handbook.
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