Trading with money or shares borrowed from your broker
Margin trading means posting collateral with a broker and borrowing cash or stock to trade with. You can control several times your own money, which magnifies both gains and losses, and you pay interest and borrowing fees. If your collateral falls in value the broker demands more, and failing to provide it means forced liquidation.
Put up $3,000 to control $9,000. A 10% fall costs $900 — 30% of your own money.
Japan — In Japan the law sets the margin deposit at no less than 30% of the trade value, with a minimum of ¥300,000 (as of 2026). For standardized margin trades exchange rules set the repayment deadline (up to six months); for negotiable margin trades the broker and the client agree on it.
South Korea — In Korea the broker sets the margin deposit rate, but it must be at least 40%, and the loan term, limit and interest rate are also the broker's to set (as of 2026).
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.