Margin

Understand the risks of trading on the margin so you can make informed trading decisions.

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Margin

Understanding Margin Interest

Even if traders don't intend to use margin, there are actions that can trigger margin interest. Here are tips for understanding and reducing the potential of a margin loan.

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Financial Planning

3 Ways to Borrow Against Your Assets

You may be able to use your investments or home to secure lending. Here's what to know before using your assets as collateral.

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Government Policy

SEC Approves Scrapping $25,000 Day Trader Minimum

Under the new rules, traders will no longer be required to maintain an account balance of $25,000 to engage in frequent margin day trading.

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Margin

Option Traders: How Portfolio Margin Works

Portfolio margin is available to qualified Schwab clients who have a margin account and meet the requirements. Learn more about what it is, how it works, and the risks involved.

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Margin

Margin Loans and Purchased Money Market Funds

Money market funds aren't the same as cash when it comes to margin loans. Understanding the key differences can help avoid surprise margin loans and interest charges.

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Margin

Understanding Risk-Based Concentration and Margin

Margin increases potential return—and risk. To help protect clients and the firm, Charles Schwab uses a risk-based concentration model to set margin requirements.

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Trading

The Short of It: Answers About Short Selling

Short selling involves the sale of borrowed shares in the hope of profiting from a decline in the stock price. It's risky, but it also adds to market efficiency.

The information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.

Investing involves risk, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options" before considering any option transaction. Supporting documentation for any claims or statistical information is available upon request.

With long options, investors may lose 100% of funds invested.

Covered calls provide downside protection only to the extent of premiums received, and prevent any profitability above the strike price of the call.

Cryptocurrency- related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended. Please read more about risks of trading cryptocurrency futures here.

Futures, futures options and Forex trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options prior to trading futures products.

Forex trading involves leverage, carries a substantial level of risk, and is not suitable for all investors. Please read the Risk Disclosure for Forex.

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