Margin Requirements
Interactive Brokers sets specific margin requirements that traders must adhere to. These requirements vary based on the financial instruments being traded and the size of the position.
Benefits of Using Margin
Using margin can amplify potential returns by allowing traders to increase their market exposure without committing additional capital. This can be advantageous in capturing larger market movements.
Risks Involved
Trading on margin increases the potential for significant losses, as both gains and losses are magnified. It's essential to manage risk carefully and understand the implications of margin trading.
