Margin

Understand the risks of trading on the margin so you can make informed trading decisions. Or explore other trading topics:

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Trading

Short Selling: Can You Profit from Falling Stocks?

Watch to learn how short selling, or shorting, a stock allows investors to sell a stock high, buy it low, and pocket the difference.

Margin

Three Ways to Use Margin and Leverage

Learn three ways investors and traders can maximize the use of margin while managing the risks of leverage in their investing strategies.

Options

Collaring Your Stock for Temporary Protection

Downturns are a natural part of any market. Learn how a collar strategy—a covered call and a protective put—might be a way to manage stock risk.

Margin

Your First Margin Call

What are your options for topping up your account after a position drops?

Margin

Margin: How Does It Work?

In the same way a bank can lend you money if you have equity in your house, your brokerage firm can lend you money against the value of the investments in your portfolio.

Financial Planning

3 Ways to Borrow Against Your Assets

What to know before using your assets as collateral.

Margin

What Every Trader Should Know About Margin

Learn what margin is, the benefits and risks, and four tips for managing margin risk.

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Important Disclosures

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.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Investing involves risks, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss. With long options, investors may lose 100% of funds invested. Covered calls provide downside protection only to the extent of the premium received. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Supporting documentation for any claims or statistical information is available upon request.

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