💡 Get a head start! Learn all about Margin Accounts before they go live. This feature isn't available yet, but we’re working hard for its big debut!
At Hapi, you can choose between two types of accounts: a cash account and a margin account.
If you activate a margin account, you can access a line of credit backed by your assets, which may increase your buying power but also increases the level of risk in your account.
Below, we explain how it works, the requirements you must meet, and the main considerations.
Access to a margin line is not immediate. It is subject to an approval process and depends on the value of your portfolio (cash + eligible assets), starting from $2,500 in the app. This amount may vary based on internal and regulatory conditions.
If your application is approved, your Buying Power will include new components such as:
Total margin: the maximum amount of credit available
Margin used: the amount you are currently using
Note: The value of your crypto portfolio is not included in this calculation. For regulatory reasons, cryptocurrencies are not considered collateral.
Some examples of margin transactions
(The following examples are for illustrative purposes only and do not represent actual or guaranteed results.)
Profit with margin
Suppose you deposit $4,000 in cash and use your $2,000 margin line to buy 120 shares at $50 each. Total investment: $6,000.
Borrowed funds (margin used): $2,000
Initial cash (your contribution): $4,000
If the stock price rises to $60, the value of your shares reaches $7,200.
Margin debt: $2,000
Net portfolio value (equity): $5,200
This means you have an unrealized gain of $1,200. If you had invested only your $4,000 without margin, you could have bought 80 shares.
At $60 per share, the portfolio value would be $4,800
Gain = $800
In other words, with margin, your gain is 50% higher ($1,200 vs $800).
Loss with margin
Suppose you deposit $4,000 in cash and use your $2,000 margin line to buy 120 shares at $50 each.
Total investment: $6,000.
Borrowed funds (margin used): $2,000
Initial cash (your contribution): $4,000
If the stock price drops to $40, the value of your shares falls to $4,800.
Margin debt: $2,000
Net portfolio value (equity): $2,800
This means you have an unrealized loss of $1,200. If you had invested only your $4,000 without margin, you could have bought 80 shares.
At $40 per share, the portfolio value would be $3,200
Loss = $800
In other words, with margin, your loss is also 50% higher ($1,200 vs $800).
Key points about using margin
Margin can amplify both gains and losses
You may lose more than your initial investment
Your portfolio value may change rapidly
If you do not maintain the required level, you may face a margin call
In certain conditions, your positions may be liquidated without prior notice
Legal Disclaimer: Using margin involves risks and is not suitable for all investors. When trading on margin, you may lose more than your initial investment. Past performance does not guarantee future results. This content is for informational purposes only and does not constitute advice, a recommendation, or an offer to buy or sell securities.