- 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.
- 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.