Key concepts and terms in a margin account

Review the concepts and terms used in your margin account below:

Margin requirements

The minimum amount of equity you must maintain in your margin account. It is typically expressed as a percentage on each security. You can find the margin requirement for each security by searching for the name or symbol and reviewing the "Market Details." You can find the margin requirement for your account as a whole by clicking into your Margin health and clicking into the "Breakdown" dropdown menu.

Margin available

Excess equity available from your assets that can be used towards additional purchasing power. Each asset's margin requirement determines how much additional purchasing power is given. The margin requirement can change at any time without notice. If the margin requirement changes, it'll impact your margin available. Keep Margin available above $0 to avoid a margin call.

Note: Positions in your other Wealthsimple accounts don't currently contribute to the margin available in your margin account.

CAD available

Available CAD money in the account. If this is a debit balance (less than $0), this will show as $0 and the debit amount will be under CAD margin used.

USD available

Available USD money in the account. If this is a debit balance (less than $0), this will show as $0 and the debit amount will be under USD margin used.

CAD margin used

Amount of CAD dollars owed to Wealthsimple as a result of trading on margin. This balance includes interest and other charges to the account that result in a debit balance. This amount accrues interest on a daily basis and is posted monthly.

USD margin used

Amount of USD dollars owed to Wealthsimple as a result of trading on margin. This balance includes interest and other charges to the account that result in a debit balance. This amount accrues interest on a daily basis and is posted monthly.

Max buying power

The theoretical maximum purchasing power for securities; the highest amount you can purchase using margin (maximum leverage).

Margin health

Indicates whether or not your margin account is sufficiently collateralized. Margin health states include:

Good: you have excess equity available from your assets that can be used towards additional purchasing power.
Margin call: you don't have enough equity in the account and you're in a margin call. A margin call is a demand from your broker to fund your margin account. Margin calls occur if you have purchased securities on margin and the value of your account falls below the margin requirement (maintenance margin).

Concentration limits

A concentration limit is the most Wealthsimple will lend you to purchase a single security. Currently, the concentration limit of a single security is $250,000 CAD/USD.

For example, if the security is denominated in CAD, the maximum loan value for each security is $250,000 CAD. Similarly, if the security is denominated in USD, the maximum loan value for each security is $250,000 USD. To request a concentration limit adjustment, please contact our support team. Requests are made on a case-by-case basis.

Learn more about the Wealthsimple margin account

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