Buying stocks on margin is risky, especially for investors that are new to the concept.
To protect yourself, here are the things you need to do:
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Understand what happens if the price of the securities purchased on margin declines.
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Know that you are charged interest for borrowing money and that will affect the total return on your investments.
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Be aware that not all stocks can be used as margin or security for the loan
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Remember that we can remove securities from the list of marginable securities and reduce the margin rating at any time in our sole and absolute discretion.
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Ensure that trading on margin is appropriate for you in light of your investment objectives, risk management parameters, and personal circumstances.