Margin can magnify your profits, as any gains on your position are calculated from the full exposure of the trade, not just the margin you put up as a deposit.
Unlike leveraged products, trading on margin enables you to go short on markets – so you can profit from markets that are falling in price, as well as rising.
Margin increases your buying power than what’s currently deposited in your account.
Flexibility and Convenience – at trade time you can choose to utilize margin or trade fully with existing funds. Not required to pre-apply for Margin at trade time.
Affordable – With low interest rates, you will only be charged for the margin you use. Additionally, there are no penalties for not using margin.
Margin borrowing increases your leverage, so the value of your investments can go down as well as up.
You must repay your margin loan, regardless of the underlying value of the assets you purchased. Unpaid margin loans may result in collections.
You may be asked to meet Maintenance Margin Requirements at any time, without significant advance notice.
If the margin in your account falls below the Margin Maintenance Requirement, you’ll be asked to promptly deposit additional cash to prevent liquidation. If the amrgin falls farther, liquidation will occur at 25% margin automatically.
Everytime you utilize margin, depending on the Asset you are borrowing you will incur a daily interest charge as highlighted below.