# Margin Trading ## Overview If your Euro Pacific Trader1 is already open, you can request to enable or disable Margin Trading by [creating a case](https://europacbank.com/support/guide/#create-case) inside your eBanking Support Center. When applying for a Euro Pacific Trader account, you can choose two account types: Cash Account or Margin Account. We compare the two account types below. ## Cash Account Most clients select the standard account type called a Cash Account. Cash Accounts have several limitations: * Cannot borrow to buy stock, write uncovered options, sell stock short or maintaining certain option spreads. * Cannot transact with unsettled funds. * Cannot maintain short balance in any currency. The account will be required to convert funds prior to transacting in products denominated in a currency you do not hold. * Subject to forced liquidation if insufficient cash to satisfy fees (e.g. market data or news subscription fees). ## Margin Account Margin Trading is simply borrowing cash to buy a security. If you request to enable Margin Trading, please note that it comes with a host of risks and costs, one of them being the platform automatically [creating a margin loan](https://europacbank.com/support/ept-sub-accounts/) when buying a security denominated in a currency that you do not have available, leading to interest charges. For most trading clients, margin obligations are calculated by a defined formula and applied to each “marginable” financial instrument. To read more about this formula, please read our [Interest & Financing](https://europacbank.com/products/brokerage/ept/pricing/interest-financing/) page. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://help.europacbank.com/help/faqs/euro-pacific-trader/margin-trading.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.