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.