What are margin trading privileges?
Margin trading is not suitable for all investors. Margin trading allows you to borrow money to purchase securities. You pay margin interest on the amount of funds that you borrow. Your margin account must have a minimum of $2,500 in equity to be eligible to purchase securities on margin.
Margin trading will increase your buying power and involves interest expenses and other risks, including the potential to lose more than the initial amount you deposited or the need to deposit additional collateral during a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information, please see our Margin and Short Account Agreement, Margin Disclosure Statement, Day Trading Risk Disclosure, and FINRA Investor Information.
These disclosures contain information on our lending policies, interest rates, and the risks associated with margin accounts.