(March 15 – 17:40 ET) – Margin buying declined in January, as investors continue to rein in their borrowing in the face of choppy markets.

The Investment Dealers Association reports that margin debt slipped from $10.7 billion at the end of 2000, to just under $10.5 billion at the end of January 2001. This continues the downward trend from a peak of $11.9 billion back in September, but it remains slightly ahead of an average $10 billion for the whole of 2000.

The IDA notes that, “more investors are buying securities on margin than ever before”. It says that average borrowing of $10 billion during 2000 is nearly four times the level of a decade ago. As a result it has issued a guide to buying on margin to ensure that investors know just what they are getting into when they borrow to buy stock.