3) Pros and Cons of using a margin account

Pros:

  • You can use your funds in your Tiger Trade app as leverage to increase your purchasing power.
  • Our margin account supports up to 4x intraday leverage and 2x overnight 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 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.
 
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