What are the benefits of margin pledging?

There are two main benefits of margin pledging: 

  • Increased Buying Power: By leveraging your existing holdings, you can access additional margin, allowing you to trade in larger quantities. This can potentially magnify your profits if your trades are successful.
  • Enhanced Liquidity: Pledging enables you to access additional funds without selling your existing investments. This can be helpful for short-term needs or to maintain your investment portfolio composition while utilizing some of its value for trading purposes or for hedging your current holdings. This in turn makes the market more liquid for all participants.