FINRA Margin Debt
Monthly indicator measuring market leverage and investor sentiment through margin debt outstanding at broker-dealers, reported by FINRA.
Last Updated:
-
Source:
FINRA (via FRED)
Historical Range
High: -B
Average: -B
Low: -B
Margin Debt History
Correlation loading
About FINRA Margin Debt
FINRA margin debt represents the total amount of margin debt outstanding at broker-dealers, reported by the Financial Industry Regulatory Authority. It reflects the total amount of money investors have borrowed to purchase stocks. High margin debt indicates investors are using leverage to buy more stocks, suggesting optimistic market sentiment.
Contrarian Indicator
Margin debt is widely used as a contrarian indicator. When margin debt is significantly above historical averages, it may signal excessive market optimism and potential corrections ahead. Conversely, when margin debt is significantly below historical averages, it may indicate market pessimism and potential buying opportunities.