---
title: What risks are involved in trading on margin?
description: Margin trading involves higher risk, including the possibility of losses exceeding your initial investment due to borrowing. Review the Margin Disclosure Statement and FINRA guidance before trading on margin.
---

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# What risks are involved in trading on margin?

Please note that trading on margin involves increased risk and could result in losses that exceed initial and/or subsequent investments. Since you are allowed to borrow funds above the amount deposited, trading on margin can result in losses greater than the initial principal invested. The decision to trade on margin must be considered carefully by each investor. Please examine the following [Margin Disclosure Statement](https://cdn-lpbr.lime.co/lpbr-static/Margin_Disclosure_Statement_1_3ab9dc7001.pdf). Please also read additional information, including [FINRA’s Margin](https://www.finra.org/investors/investing/investment-accounts/brokerage-accounts#margin-accounts) Information and [FINRA’s Margin FAQs](https://www.finra.org/rules-guidance/key-topics/portfolio-margin/faq#margin).

 

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