Data: Leverage in the U.S. investment market surges, with trading margin debt increasing by $57.2 billion in October

ChainCatcher reported that KobeissiLetter released data showing that in October, US trading margin debt surged by $57.2 billion, reaching a record high of $1.2 trillion, marking the sixth consecutive month of increase. So far this year, US trading margin debt has increased by $285 billion, a 32% rise. Over the past six months, margin debt has soared by 39%, the largest increase since 2000, even surpassing the surge during the 2021 Meme stock craze. The leverage ratio in the US investment market is now extremely high.

Trading margin debt refers to the total amount of debt investors incur when borrowing money from brokers to purchase stocks or other securities in securities trading. This allows investors to amplify their investment scale with less of their own capital, thereby increasing potential returns, but also magnifying risks.