What are the risks of trading with Stock Margin?

Due to the use of leverage and the potential for losses to exceed your initial investment, Stock Margin comes with additional risks compared with regular stock trading:

• Leverage and market risk: Because your exposure is doubled, sharp market movements can result in losses greater than your original margin.
• Overnight fees: Interest accrues daily on the borrowed amount, which is charged to your available balance and should be monitored.
• Margin call: If your equity drops too much, your account may receive a margin call and ultimately enter liquidation. In some cases, your Stock Margin trades may be closed to prevent your account from going negative.

Learn more about what happens during a margin call.