Margin trading lets you boost your buying power by borrowing funds from Alaric Securities.
Margin trading allows you to trade using borrowed funds, increasing your buying power and potential returns, but it may also affect your risk.
Leverage depends on account size: up to 6:1 intraday and 2:1 overnight for accounts over $1000 and under $100,000; higher for larger or professional accounts. Interest is charged daily.
Match margin to your experience, risk appetite, and goals. Beginners should use lower leverage and assess risk carefully. Professionals can request higher leverage with solid risk management.
Margin amplifies profits and losses. Falling position values can trigger margin calls or forced liquidation. Only risk a small portion of your capital per trade (2–5% recommended). Stop-loss orders are strongly advised.
No. Most traders should not start with maximum leverage. Start small, build experience, and increase only as your risk management improves.
Learn more here.
Most brokers require a minimum of ~$1,000 for margin accounts, but our minimum is only $500.
You must deposit more funds, or positions will be closed—often at a loss.
No. Use incremental risk and only increase leverage with experience and demonstrated discipline.
On Margin Accounts, Leverage interest is based on the Secured Overnight Financing Rate (SOFR), but not less than 500 bps, plus markup. Long margin interest is charged daily on the cost of open long positions.
Short margin interest is calculated on a case-by-case basis, depending on stock availability and prevailing prime brokers’ interest rates.