Margin interest refers to the interest charged on borrowed money against securities you already own. When you purchase stocks or other investments on margin through BBAE, you deposit some of your own money, and borrow the remaining amount. BBAE’s current margin interest rates will apply to this borrowed amount.
For example, if you open a $100,000 position with BBAE but deposit only $50,000, you have used $50,000 of margin and must pay interest according to BBAE’s margin interest rates.
|Loan Balance||Interest Rate|
|$0 – $100K||8.33%|
|$100K – $1M||7.83%|
|$1M – $3M||7.33%|
The margin interest rates are effective as of 07/26/2023 and are subject to change without prior notice.
Using margin through BBAE amplifies your gains and losses, allowing you to earn greater returns on your investments when markets perform well but also exposing you to greater losses when markets decline. Borrowing more on margin increases risk. You may face margin calls from BBAE, be forced to deposit additional funds or sell securities to maintain the margin requirements on the positions, or have positions liquidated without notice if your account balance falls below the maintenance margin level.
Margin can be a useful tool for some investors, but you must fully understand the risks before trading on margin through BBAE. Due to the additional leverage and volatility, margin is best suited only for experienced investors seeking to aggressively amplify returns. Please review all of BBAE’s margin policies, rates, and requirements before using margin in your account.