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Margin Infographic

What is margin trading?

Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.
vs.
Securities Margin

Securities
Margin

Commodities Margin

Commodities
Margin

There are two margin definitions. Securities margin is borrowing money to buy stock.

However, when you invest in commodities, trading on margin involves putting in your own cash as collateral for the contract.

Trading Securities on Margin

Trading securities on margin is most commonly understood as borrowing money from a broker to buy stock.

Securities Margin Requirements

Initial Margin:

How much cash you must deposit to buy securities on margin.

Maintenance Margin:

How much equity you must keep in your margin account.

Example profit / loss on stock trade using margin: Bought 100 shares @ $40 ( 50 shares with cash and 50 shares on margin)
  • Borrowed Funds
  • Your Cash
Federal Reserve Regulation T Initial Margin requirement is at least
50%
Maintenance Margin requirement is at least
25%

Real-Time Activity Monitoring

Monitor Balances

View your margin balances and requirements in the TWS Account Window in real-time.

Preview Margin Impact

Shows your projected margin balances before entering an order.

Margin Alerts

Receive warnings and set alerts that tell you when your margin requirements are at risk.

Monitor Balances Monitor Balances
Preview Margin Impact Preview Margin Impact
Margin Alerts Margin Alerts