Margin Trading
Margin trading gives you up to twice the purchasing power of a traditional cash account and can be used for both your investing and personal needs. Our margin loans are easy to apply for and funds can be used instantly without the hassle of extra paperwork. Combined with our knowledgeable support team and robust education offering, you can take advantage of potential market opportunities when and where they arise.
Four reasons to choose TD Ameritrade for margin trading
Comprehensive education
Explore free, customizable education to learn more about margin trading with access to articles, videos, and immersive curriculum.
Straightforward pricing
Know what you’re paying with straightforward pricing and no hidden fees
The benefits of a margin trading account
Leverage assets to increase your buying power
Access funds without liquidating your current assets
Get a line of credit with potential payment flexibility
Diversify your portfolio and market exposure
Increase your ability to short sell and profit from stock declines
Qualified traders can trade options and futures in margin IRA's and are able to trade funds immediately when they close a position
The risks of margin trading
It's important to understand the potential risks associated with margin trading before you begin.
- Greater potential risk of loss from increased leverage
- Additional costs from margin interest charges
- Potential margin calls or liquidation of securities**
**Important information about margin calls: The firm can force the sale of securities or other assets in your account(s). The firm can also sell your securities or other assets without contacting you. You are not entitled to a time extension while in a margin call.
How margin trading works
How margin trading works
Margin trading allows you to borrow money to purchase marginable securities. When combined with proper risk and money management, trading on margin puts you in a better position to take advantage of market opportunities and investment strategies.
Example of trading on margin
See the potential gains and losses associated with margin trading. For an in-depth understanding, download the Margin Handbook.
Getting started with margin trading
1. Open a TD Ameritrade account
2. Make sure the “Actively trade stocks, ETFs, options, futures or forex” button is selected
3. Fund your account with at least $2,000 in cash or marginable securities
4. Keep a minimum of 30% of your total account value as equity at all times
Open new accountLearn more about margin trading
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