Trading

Margin Trading

Borrow against your portfolio to increase buying power, at a 6.75% annual rate.

What Is Margin?

Margin allows you to borrow money from Light Horse to purchase securities, using your existing portfolio as collateral. This amplifies both potential gains and potential losses.

Margin Rate

Light Horse charges 6.75% per year on borrowed margin balances. Interest is calculated daily and charged monthly.

How Margin Buying Power Works

When margin is enabled, your buying power is greater than your cash balance. Your margin buying power depends on:

  • Your account equity (market value of positions + cash)
  • The maintenance margin requirement — typically 25–30% for most securities
  • The initial margin requirement — typically 50% (Reg T)

For example, with $10,000 in equity, you may have up to $20,000 in buying power (2:1 leverage on overnight positions).

Day Trading on Margin

Under the updated FINRA Rule 4210 (effective June 4, 2026), intraday margin is calculated in real time based on your margin excess. You are no longer subject to a fixed $25,000 day trading minimum.

Margin Calls

A margin call occurs when your account equity falls below the minimum maintenance margin requirement. When this happens:

  1. You'll receive a notification to deposit additional funds or liquidate positions
  2. If you don't respond promptly, Light Horse may liquidate positions in your account to bring it back into compliance — without advance notice

Margin calls can happen quickly in volatile markets.

Risks of Margin Trading

  • You can lose more than you invested — your losses are amplified just like your gains
  • Margin interest adds to your cost basis over time
  • Forced liquidations may occur at unfavorable prices

Carefully read the Margin Disclosure before enabling margin.

Frequently Asked Questions

  • How do I enable margin on my account?

    Contact Light Horse support or apply through your account settings. Margin approval is subject to eligibility requirements.

  • What is the margin interest rate?

    Light Horse charges 6.75% per year on margin balances, calculated daily and charged monthly.

  • Can I lose more than I deposited if I trade on margin?

    Yes. Margin amplifies both gains and losses. In extreme cases, you can owe more than your initial deposit.