What is Questrade's policy on margin trading?

Questrade's policy on margin trading allows investors to borrow funds to purchase additional securities, thereby potentially increasing their purchasing power and enabling them to hold larger positions in the market. Margin accounts are an important aspect of trading for those looking to capitalize on price movements more aggressively than what their initial capital would allow. It is essential for users to understand that margin trading involves heightened risks, including the possibility of substantial losses. When a client opens a margin account with Questrade, they must meet specific requirements, including a minimum balance. Margin trading is subject to the rules set by the firm as well as regulatory requirements established by financial authorities. Clients can generally borrow up to a certain percentage of the purchase price of the securities they wish to acquire, which is known as the initial margin requirement. The maintenance margin is another critical aspect of margin trading; it represents the minimum equity that must be maintained in the margin account to keep the position open. In the event that the equity in a margin account falls below the maintenance level, Questrade may issue a margin call, requiring the client to deposit additional funds or liquidate positions to restore the equity balance. It is important for clients to monitor their margin levels and understand the implications of margin trading, including the risk of being required to deposit more capital or sell off positions. For detailed information on current margin rates and requirements, or to understand better the terms and conditions associated with margin accounts, it is advisable to refer to the official Questrade website, as they provide comprehensive resources and tools to assist investors in managing their margin trading activities effectively.