Trading on Margin
The basic principle of margin trading is that the investment is partly financed by funds borrowed from Patria Finance, whereby the securities or money serves as collateral. After the securities in question are sold, the client pays the loan back, including interest, and retains the gain.
Why trade on margin?
- Lack of cash – convenient for investors with long-term positions in their portfolio who spot a short-term investment opportunity. In this case, they can use part of their long-term positions as collateral to obtain credit for a short-term speculation.
- Using leverage – thus, you can increase the return on your funds. When drawing credit, investors put in only part of the sum required to conclude the trade. However, they assume full responsibility for the losses or gains made on the trade.
The provision of a loan is free of charge! You can draw credit funds in various currencies! Initial margin 40% - In order to buy securities worth 100,000 CZK, you need only 40,000 CZK.