Margin Infographic

What is margin trading?

Your capital is at risk. You may lose more than your initial investment.

Securities Margin


Commodities Margin


There are two margin definitions. Securities margin is borrowing money to buy stock.

However, when you invest in commodities, trading on margin involves putting in your own cash as collateral for the contract.

Trading Securities on Margin

Trading securities on margin is most commonly understood as borrowing money from a broker to buy stock.

Securities Margin Requirements

Initial Margin:

How much cash you must deposit to buy securities on margin.

Maintenance Margin:

How much equity you must keep in your margin account.

Example profit / loss on stock trade using margin: Bought 100 shares @ $40 ( 50 shares with cash and 50 shares on margin)
  • Borrowed Funds
  • Your Cash
Federal Reserve Regulation T Initial Margin requirement is at least
Maintenance Margin requirement is at least

Real-Time Activity Monitoring

Monitor Balances

View your margin balances and requirements in the TWS Account Window in real-time.

Preview Margin Impact

Shows your projected margin balances before entering an order.

Margin Alerts

Receive warnings and set alerts that tell you when your margin requirements are at risk.

Monitor Balances Monitor Balances
Preview Margin Impact Preview Margin Impact
Margin Alerts Margin Alerts

The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. Options are not suitable for all investors. For more information, read the "Characteristics and Risks of Standardized Options".

Your capital is at risk and your losses may exceed the value of your original investment.

Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Reference Number 208159.

Cryptoassets are unregulated in the UK. Interactive Brokers (U.K) Limited ("IBUK") is registered with the Financial Conduct Authority as a cryptoassets firm under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC ( compensation scheme;
products are only covered by the UK FSCS in limited circumstances.

Before trading, customers must read the relevant risk disclosure statements on our Warnings and Disclaimers page.

For a list of IBG memberships worldwide, see our exchange listings.