Margin Account Introduction?
Investors who have opened a margin account can access additional buying power based on the value of securities in the brokerage account.
What is Margin Trading?
Margin trading allow investors to make leveraged investments to amplify returns. Margin trading is risky and it's not appropriate for everyone, you should determine whether using margin is consistent with your investment strategy.
After opening a margin account, investors can conduct financing transactions and enjoy up to 4 times leverage financing.
What is short selling?
Short selling refers to the act of borrowing securities and selling them, with a plan to buy back and return them later. A collateral will be calculated and frozen to ensure you can close out the short position. Since you do not have a long position in a stock, you pay interest and fees to borrow these securities to short sell.
We do not currently support short selling on Tradesk etc.
Account Types
Cash Account - When buying securities in a Cash Account, you must deposit cash to settle trades or sell an existing position so that cash proceeds are available. As there is no margin to use, there is no short selling and no option trading.
Margin Account - With a Margin Account, you are given access to more buying power through margin investing. With this account type, you are able to borrow and trade all financial products.