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Summary

Margin debt increased 1.8% in September.

Margin debt grew 31.4% year-over-year, or 26.7% when adjusted for inflation.

US investor credit balances reached $1,046.1 billion in September.

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By Jennifer Nash

Margin debt increased in September to $1.48 trillion. This marked a 1.8% increase from August and a 31.4% rise compared to the previous year. When adjusted for inflation, the debt level was up 2.6% month-over-month and was up 26.7% year-over-year.

What Is Margin Debt? Background and Market Risks

Margin debt is the amount of money an investor borrows from their broker via a margin account. Trading with a margin debt can magnify gains because an investor can benefit from the upside of any stock without having to invest 100%, resulting in greater profit. Conversely, trading with margin debt can also exacerbate losses.…