Trading with Financing Overview
Trading with Financing
Benefits of a Margin Trading Account
Use the cash or securities in your account as leverage to increase your buying power.
Get the lowest market investment loan interest rates of any broker.
Diversify trading strategies with short selling, options and futures contracts, or currency trading.
Understand the Risks of Trading with Financing
Financing transactions with investment loans is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.
Before trading on margin, understand the following risks
- Trading losses may be greater than the value of the initial investment
- Leveraged investments create a greater potential risk of loss
- Additional costs from margin interest charges
- Potential margin calls or liquidation of securities
