What Is Trading On Margin | E*TRADE

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Margin Trading Margin Trading

Borrow up to 50% of your eligible equity to buy additional securities. Powerful tools, real-time information, and specialized service help you make the most of your margin trading.

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How margin trading works

Borrow to buy stock

Purchase more shares than you could with just the available cash in your account, based on your eligible collateral

The potential reward

If the stock price goes up, your earnings are amplified because you hold more shares

Weighing the risk

If the stock price moves against you, you could lose more than your initial investment

Paying interest

As with any loan, you pay interest on the amount you borrowed

View margin rates

$0

Stocks2

50¢

Options contracts2

$1.50

Futures contracts3

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The E*TRADE from Morgan Stanley margin advantage

Spot and seize potential opportunities with powerful tools, specialized support, and competitive margin rates

  • Advanced margin tools and real-time updates let you manage your trading with precision
  • Have questions? Get answers fast from dedicated specialists who know margin trading inside and out.
  • Keep trading costs low with competitive margin interest rates.

View margin rates

Powerful tools and insights

We give you the tools and resources to make fully informed decisions about using margin

  • Margin Analyzer Tool: All-in-one dashboard to monitor margin requirements for different positions
  • Margin Calculator Tool: Create what-if scenarios to explore the potential outcomes of different transactions
  • Requirements search: Different trades have different margin requirements. Look them up with just a few clicks.
  • Risk Slide Tool: Analyze your portfolio across a range of conditions. Use the grid and the graph within the tool to visualize potential profit and loss.
Watch a demo on how to use our margin tools

More leverage with portfolio margin

Sophisticated traders can increase their buying power and lower their margin requirements with portfolio margin

  • Margin requirements are based on the overall risk of your entire portfolio, not just individual positions
  • Enjoy dedicated support from experienced margin and derivatives specialists who share your passion for trading
  • Available to experienced traders with Level 4 options approval and $100,000 or more in account equity
  • Download applications Personal Portfolio Margin Application Business Portfolio Margin Application

     or call 800-998-8079 to speak to a representative

 

Learn more about margin

Our knowledge section has info to get you up to speed and keep you there.

For your consideration: Margin trading

Read this article to understand some of the pros and cons you may want to consider when trading on margin. Read more

Understanding the basics of margin trading

Read this article to understand some of the considerations to keep in mind when trading on margin. Read more

Portfolio margin: Basic hedging strategies

Read this article to gain an understanding of basic hedging strategies. Read more Explore our library

Get up to $1,000 $1,500 for a limited time1

Open and fund a new brokerage account with a qualifying deposit by 6/30/2026. Learn how

Terms apply. Use promo code: OFFER26

 Open an account

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