Potential advantages Potential disadvantages
  • Low cost
  • Complexity
  • Ease of short selling (i.e., borrowing securities to sell at the current market price and hoping to buy them back later at a lower price)
  • Counterparty risk
  • Leverage
  • Potential for margin calls (that is, a demand from the brokerage to deposit additional funds into investor's margin account)
Investment and Insurance Products Are: Not FDIC Insured • Not Insured by Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or any of its Affiliates • Subject to Investment Risks, Including Possible Loss of Principal Amount Invested

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