Benefits:
Purchase more shares than you could with just the available cash in your account, based on your eligible collateral.
If the stock price goes up, your earnings are amplified because you hold more shares.
You're able to short securities and catch market opportunities in both directions.
Risks:
You can lose more than your initial deposit.
The brokerage firm can force the sale of securities in your account.
The brokerage firm can sell your securities without contacting you.
You are not entitled to an extension of time on a margin call.
Open short-sale positions could cost you.
Click here to learn more about trading in a margin account.
Still got questions? Contact TradeUP Customer Support by email at support@tradeup.com or reach out to us on Live Chat!