How do I trade on margin?

Margin accounts with margin equity of $2,000 or more can trade on margin and short sell with up to 4 times day trade buying power and 2 times overnight buying power. Buying power is calculated based on your settled cash and as well as the partial market value of your current positions. 

Please note that some volatile stocks may have higher margin requirements and some cannot use leverage. You can see whether you can utilize leverage on a particular stock while placing an order.

How do I know which stocks I can trade with leverage?

*The term "equity" means the customer's ownership interest in the account, computed by adding the current market value of all securities "long" and the amount of any credit balance and subtracting the current market value of all securities "short" and the amount of any debit balance. 

**Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels

For applying for margin you should have a clear understanding of the rules and potential risks associated with margin, such as the pattern day trading rule, day-trading buying power versus overnight buying power, and margin calls. Margin trading increases the risk of loss and includes the possibility of a forced sale if account equity drops below required levels.