How Margin Trading Works?
https://alaricsecurities.com/blog/ufaq/how-margin-trading-works/
To trade on margin, you need to open a margin account and make an initial deposit called the initial margin. Your broker then lends you additional funds, allowing you to purchase more securities than your ...
What is a custom margin, and how does it work?
https://alaricsecurities.com/blog/ufaq/what-is-custom-margin-and-how-does-it-work/
Custom margin at Alaric Securities is a negotiated leverage structure beyond standard rates – up to 40:1 intraday/10:1 overnight for accounts >$100K (50:1 for institutions). It amplifies buying power based on your profile, with daily ...
Who can qualify for custom margin requirements?
https://alaricsecurities.com/blog/ufaq/who-can-qualify-for-custom-margin-requirements/
Professional traders, institutions, and accounts >$100K with verified experience, low drawdowns, and strong risk management. Active traders who meet volume thresholds or demonstrate discipline qualify for higher leverage (up to 40:1).
Can custom margin levels be adjusted after approval?
https://alaricsecurities.com/blog/ufaq/can-custom-margin-levels-be-adjusted-after-approval/
Yes, levels can be renegotiated based on performance, account growth, or market conditions. Contact your account manager or submit a request through the portal for review.
How is risk managed with a custom margin?
https://alaricsecurities.com/blog/ufaq/how-is-risk-managed-with-a-custom-margin/
Real-time monitoring via HAMMER PRO Risk Terminal, customizable stop-loss/daily limits, position sizing alerts, and automated margin calls/liquidation if equity falls below requirements. MiFID II-compliant tools ensure amplified losses don’t exceed account balance (negative protection not ...
What documentation is needed for a custom margin application?
https://alaricsecurities.com/blog/ufaq/needed-documents-for-custom-margin-application/
ID/Passport, proof of address (bank statement/utility), trading history/P&L statements from prior brokers, risk disclosure acknowledgement, and financial suitability questionnaire. Submit via client portal.
What is Short Margin Interest?
https://alaricsecurities.com/blog/ufaq/what-is-short-margin-interest/
Short margin interest is calculated on a case-by-case basis, depending on stock availability and prevailing prime brokers’ interest rates.
What is Long Margin Interest?
https://alaricsecurities.com/blog/ufaq/what-is-long-margin-interest/
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.
Should I ever go “all in” with leverage?
https://alaricsecurities.com/blog/ufaq/should-i-ever-go-all-in-with-leverage/
No. Use incremental risk and only increase leverage with experience and demonstrated discipline.
What happens during a margin call?
https://alaricsecurities.com/blog/ufaq/what-happens-during-a-margin-call/
You must deposit more funds, or positions will be closed—often at a loss.