Trading on margin can magnify your returns, but it can also increase your losses. Learn the basics, benefits, and risks of margin trading.
How can individuals get risk based margins like market makers and not have to own a seat on the exchange floor? It's with portfolio margin.
Portfolio margin is available to TD Ameritrade clients who have a margin account and meet requirements like a certain equity level and options approval.
Margin trading has been around forever. But qualified traders, there’s another category—portfolio margin—that could take your leverage to new heights.
When trading in a cash account, understand the three different types of cash account violations you could encounter: free ride violation, good faith violation, and liquidation violation.
Short selling aims to provide protection or profit during a stock market downturn, but it can be risky. Plus, it requires a margin account. Learn the mechanics of shorting a stock.
What is leverage in the forex market? It’s the ability to buy and sell foreign currencies while putting up only a fraction—3% to 5%—of the notional amount. Leverage offers potential opportunity, but it’s also quite risky.
Once you’ve mastered the basics of margin trading, you might want to learn how different trader and investor types use it. It can depend on your objectives, risk tolerance, and the products you trade.
A margin account can be useful for investment leverage. Did you know it can also be used as a convenient line of credit with a low interest rate and flexible repayment? But understand the risks.
Investors seeking to profit from a market downturn or looking for portfolio protection have several shorting alternatives. Here are three of them.
Learn how experienced investors comfortable with the risk of margin trading can view a margin account as a “reserve fund.”
Learn how following short interest and other short-selling metrics can help investors can gain valuable insights on companies and markets.
There is a way to turn naked options into risk-defined positions to lower the margin requirements and free up capital at the same time. The strategy: a vertical spread.
Nobody wants his or her stock investments to be forcefully liquidated. Protect your portfolio with better estimations and risk management plans.
Part 3 of our series on portfolio margin covers profit, loss, and what happens at expiration—eventually your position will expire, know what to expect.
Part of our series on portfolio margin, the greeks—theoretical metrics describing how things like stock price, time, and volatility can impact option price.
You can upgrade your trader status by expanding your leverage with portfolio margin, but first you must know synthetic equivalents—here's a primer.
Active traders and investors can maintain margin, a cushion of buying power in their accounts for volatile times.
The U.S. stock market’s march to record highs has been accompanied by surging margin debt, a potential red flag for investors.
Risk-based margin is both a blessing and a curse. But is it for you?
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2021 Charles Schwab & Co. Inc. All rights reserved.