Put more purchasing power behind your trading with margin privileges. With a margin account, you can borrow money from TD Ameritrade to purchase marginable securities—providing you forex margin requirements thinkorswim trading up to twice the buying power of a traditional cash account. The securities held in your account act as collateral for the loan, and you pay interest on the money borrowed.
With proper risk and money management techniques, margin can be used to potentially enhance your investment strategy. How margin trading works Watch our margin tutorial to learn, in simple terms, what margin is and how it can work in a portfolio. Traders have three powerful words in their vocabulary—margin, leverage, and exposure. Understanding this trio’s potential risks and rewards is valuable, as small market moves can add up to big trouble fast. 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. Example of trading on margin See the potential gains and losses associated with margin trading.
For an in-depth understanding, download the Margin Handbook. Advanced trading offerings, plus straighforward pricingA margin account can help advance your trading strategy by potentially opening up new opportunities, such as shorting stocks, and trading options, futures, forex, and portfolio margin. Options, futures, and forex trading privileges are subject to additional review and approval. All investing involves risk, including loss of principal. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval.
Options are not suitable for all investors, as the special risks inherent to option trading may expose investors to potentially rapid and substantial losses. Option trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options. Futures and futures options trading is speculative, and is not suitable for all investors. Please read the Risk Disclosure for Futures and Options prior to trading futures products. Market volatility, volume, and system availability may delay account access and trade executions. All other security types are not analyzed.