What is Margin Trading?

To acquire more buying power from borrowing money from Longbridge for more profit, but also, at the same time, will take more risks.

Margin trading max buying power diagram
Margin trading profit diagram
Comparison table of warrants, CBBCs and options

Initial Margin Rate: When opening a new position, the proportion of cash required from your account. Initial Margin Rate: The proportion of cash required in your account when market value changes.

Increased purchasing capacity beyond your available cash

Competitive financing ratio

Unlock additional purchasing capacity with your existing stocks as collateral

Risks you need to know about margin trading

  • · Involves taking on higher risks for higher returns
  • · Accumulation of financing charges has the potential to diminish your profits and escalate the overall cost involved
  • · Potential liquidation risk during times of volatile market fluctuations
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