3) Pros and Cons of using a margin account
Pros:
- You can use the funds in your Tiger Trade account as leverage to increase your purchasing power.
- Our margin account supports up to 4x leverage.
- Competitive interest rates on margin loans.
- You can trade options and futures using your margin account.
- You can take a loan against your margin account at any time and repay the loan on your own schedule.
Cons:
- It is riskier to trade stocks on margin than it is to buy stocks on a cash account.
- You could lose more funds than you deposit in the margin account. A decline in the value of securities that you have purchased on margin may require you to provide additional funds to Tiger Brokers.
- We may sell the securities or other assets in any of your accounts held with us to cover the margin requirement.