Retail Investors Push Margin Debt to Record $1.5 Trillion as Robinhood's Book Jumps 127%
Updated
Updated · CNBC · Oct 9
Retail Investors Push Margin Debt to Record $1.5 Trillion as Robinhood's Book Jumps 127%
2 articles · Updated · CNBC · Oct 9
Summary
U.S. margin debt hit an all-time high of about $1.5 trillion in June, with retail investors increasingly borrowing against portfolios to buy more stocks during this year's rally.
Robinhood's margin book climbed to a record $21.6 billion in the second quarter, up 127% from a year earlier, as low rates, transfer bonuses and smartphone access made leveraged trading easier.
Fundstrat data show monthly margin debt growth above 45% year over year has preceded stock-market declines five of six times since 1960; June's reading reached 49% even as the S&P 500 rose more than 13% in 2026.
Advisers said leverage can amplify losses and trigger forced selling, while younger traders facing high inflation and a tough job market are still gravitating to concentrated, higher-risk bets.