Margin benefits

Enjoy these benefits of margin trading at Pinetree Securities:

Increased returns

The most significant advantage of using margin is the ability to leverage your investments and increase the returns when the price of your holdings is moving in your favor. A simple example explains the power of leverage:

Margin trading example: You have $20,000 worth of securities bought using $10,000 borrowed and $10,000 in cash. When the value of these securities rises by 25% to $25,000, and the amount you borrowed from your broker stays at $10,000, your equity becomes $15,000. That means your equity grew from $10,000 to $15,000, which is a 50% growth rate.