The downside of using the margin is that if the share price falls, significant losses can increase rapidly. Suppose the stock you bought for $50 drops to $25. If you have fully paid the stock, you lose 50% of your money (your loss of USD 25 is equal to 50% of your initial investment of $50). But if you bought on a margin, you lose 100 percent (your loss of 25 USD represents 100% of your initial investment of $25) and you still have to make up the interest you owe on the loan. For FINRA`s margina account resources, please read the “Investment with Borrowed Funds: No Margin” for Error alert and FINRA`s Investor Bulletins “Purchasing on Margin, Risks involved with Trading in a Margin Account” and “Understanding Margin Accounts, Why Brokers Do What They Do” As with most loans, the margina agreement explains the terms of the margina account. The agreement describes z.B., how the interest on the loan is calculated, how you are responsible for repaying the loan and how the securities you buy are used as collateral for the loan. Carefully review the agreement to determine what notification, if any, your company should give you before selling your securities to recover borrowed money or changing the terms under which interest is calculated. As a general rule, the entity must notify the client in writing for at least 30 days of any changes to the method of calculating interest. You may be entitled to compensation under the Financial Services Compensation Scheme in connection with the services provided to you under this contract. It depends on the nature of the business, the circumstances of your application and the type of customer you are. For more information on the financial services compensation system, click here.
Please note that Revolut itself is not a licensed company, we are not members of the Financial Services Compensation Scheme, but our client, Resolution Compliance Ltd. is. Payment and billing. You agree to pay for securities and other assets purchased for your account on or before the settlement date, which is indicated on the confirmation of this transaction or, if earlier, the standard billing date in the market on which these securities are traded.