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Or you made $8400 and the broker made $7K. You took on additional risk but the broker got the lion's share of the benefit. <<
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This also doesn't account for the possibility of losing your shirt with a margin call in any of the three market crashes in that period (1987, 2000-02, 2008-09).



i thought the assumption of low leverage would cover that ...


10,000 real money in and 2,500 margined .. 125 sh of XYZ @100

you don't get a margin call until the stock hits 40 (**IF* i understand correctly) --that's a huge drop ... for an overall index /fund
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