Questions?
We have answers

Using Cash versus Margin

The amount of margin used will be relative to the amount of cash you have available. That means that no margin will be used until all of the cash in your stock account has been used 100%.


Once you buy your first shares on margin, you will be able to see the amount of Margin being used in the Portfolio screen.


Example:

Let’s say you have $5,000 in your stock account: $3,000 in stocks and $2,000 in cash. After you upgrade your account to Passfolio PRO and are approved for margin, you will see an extra $5,000 of Buying Power in your stock account. 

You then decide to buy $2,000 of a given stock. Now, you’ll have used $2,000 of your own cash, but still have not used any margin. However, from this point on, additional purchases will be made using your margin, because all of your cash is gone.

Please note that the Interest Margin Rate can change without notice given market conditions.

SUGGESTED READINGS

How much money can I borrow?

Your Margin account at Passfolio typically has a leverage of...

How is interest charged on the Margin I used?

The interest rate is an annual rate* charged monthly on the 1st of every month...

How can I Increase my Margin Available?

To increase the margin available just add funds or securities to your account...

Share article
Copied!

Passfolio is your US stock broker available in over 170 countries. Sign up today to invest the US!