What is Short Margin Interest?
https://alaricsecurities.com/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/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/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/ufaq/what-happens-during-a-margin-call/
You must deposit more funds, or positions will be closed—often at a loss.
How much capital do I need?
https://alaricsecurities.com/ufaq/how-much-capital-do-i-need/
Most brokers require a minimum of ~$1,000 for margin accounts, but our minimum is only $500.
What is margin interest?
https://alaricsecurities.com/ufaq/what-is-margin-interest/
Long Margin Interest: On Margin Accounts, Leverage interest is based on the Secured Overnight Financing Rate (SOFR), but not less than 500 bps, plus mark-up. Long margin interest is charged daily on the cost of ...
Should I use maximum leverage?
https://alaricsecurities.com/ufaq/should-i-use-maximum-leverage/
No. Most traders should not start with maximum leverage. Start small, build experience, and increase only as your risk management improves.
What risks should I consider?
https://alaricsecurities.com/ufaq/what-risks-should-i-consider/
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.
How do I choose my margin level?
https://alaricsecurities.com/ufaq/how-do-i-choose-my-margin-level/
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.
How does margin work at Alaric Securities?
https://alaricsecurities.com/ufaq/how-does-margin-work-at-alaric-securities/
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.