What are the risks associated with margin?

There are several risks associated with trading securities on margin that you must fully understand:

  1. You can lose more than the amount you deposit. The leverage involved amplifies both gains and losses. You are liable for the amount borrowed plus interest charges regardless of any equity loss.

  2. Redbridge can force the liquidation of securities in your account at any time without notice to meet requirements. We not need your authorization or consent to take such actions.

  3. Redbridge can increase house margin requirements at any time without advance written notice. You must comply promptly or face liquidations.

  4. There is no grace period or extension of time granted for meeting a margin call. You must satisfy calls immediately.

  5. Dividends on shorted or lent securities are treated as substitute payments, not qualified dividends. Different tax treatment applies.

  6. Your ability to exercise voting rights on pledged or lent securities may be limited. Regulations restrict such rights.

  7. Redbridge can choose which securities to sell to meet a margin call or requirement without consulting you. We do not need to liquidate based on your preference or tax efficiency.

For more information, see our Margin Disclosure Statement here.