How to use leveraged equities margin loans

1 minute read
|18 Jul 2024
Table of contents
  • 1.
    Getting started
  • 2.
    Managing your account
  • 3.
    Managing buying power and risk

Margin loan trading used to involve inefficiencies and extra costs due to limited connectivity between lenders and brokers. CMC Markets, in partnership with Leveraged Equities, now offers a streamlined, real-time solution that makes it easier and more cost-effective to trade using margin loan capital.

Getting started

Log in to your stockbroking account. From the account dropdown menu, select 'Margin Loans' to direct access the margin loan dashboard.

Managing your account

The platform provides a detailed overview of your margin loan account, allowing informed decision making. In this section view information such as total market value, gearing ratio, lending value and available funds.

Also access a list of approved shares for margin lending, including:

  • Standard lending ratio

  • Diversified lending ratio

  • Allowable concentration limits

The Investments section shows all current investments and any unsettled trades. In the 'Collateral' section, you can view third-party guarantor securities and non-CHESS holdings included as collateral for your loan.

Managing buying power and risk

Buying power is calculated using multiple lending ratios, providing a clear understanding of trading capacity and helping manage settlement risk.

Use conditional orders such as trailing stop-loss and take-profit options to automate trades and manage risk more effectively.

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*First buy up to $1,000, per security, per day. Excludes margin loan settled trades.^FX spreads apply.
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