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.
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.
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 guaranteed).
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.
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).
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 interest (SOFR + 500bps min + markup). Request via portal/account manager; approved rates apply instantly with real-time HAMMER PRO Risk Terminal monitoring and automated liquidation if breached.
Works like this: Deposit $100K → Get 40:1 intraday ($4M buying power). 15% gain = 150% on your capital; losses magnified equally. Margin calls if equity drops – add funds or positions auto-close.
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 own capital would permit. Securities serve as collateral for the loan. Like any loan, you pay interest on the borrowed funds, calculated daily and charged monthly. Margin interest rate ranges depending on your agreement and the loan size.
You must maintain a minimum account balance, called the maintenance margin, of $100,000. If your account value falls below this threshold, the broker issues a margin call, requiring you to deposit additional funds or sell assets to meet the requirement. If these requirements are not met, your account will be restricted from doing any margin-increasing trades.
New customer accounts requesting Portfolio Margin may take up to a few business days (under normal business circumstances) after initial account approval. Existing customer accounts requiring a custom margin will also need to be approved, and this may take up to a few business days after the request is submitted. Both new and existing customers will receive an email confirming custom margin approval.