Borrowing from your broker isn't free. You will accrue Interest on any debit balance, which can eat into your potential profits.

If the value of your account equity falls below the Maintenance Margin , your broker will issue a margin call, requiring you to deposit more cash or liquidate positions immediately.

In a traditional stock trade, Regulation T typically allows you to borrow up to 50% of the purchase price. Options differ significantly:

Buying Options On — Margin

Borrowing from your broker isn't free. You will accrue Interest on any debit balance, which can eat into your potential profits.

If the value of your account equity falls below the Maintenance Margin , your broker will issue a margin call, requiring you to deposit more cash or liquidate positions immediately.

In a traditional stock trade, Regulation T typically allows you to borrow up to 50% of the purchase price. Options differ significantly:

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