Macquarie Trading Power

Macquarie Trading Power

Increase the versatility of your Margin Loan

Add Macquarie Trading Power to your Macquarie Margin Loan and you'll open up a wealth of investment opportunities. You can buy or sell options against shares held in your Margin Loan, or 'short sell' shares that you believe you can buy at a cheaper price.

How does Macquarie Trading Power work?

As an investor, you could use Macquarie Trading Power to:

  • Purchase put options to protect your investment portfolio and maximise your borrowing capacity.
  • Write call options over existing shares to generate additional income.
  • Sell shares that enable you to profit from a fall in the share price.
  • Use equity in your portfolio to finance other equity strategies.

Is Macquarie Trading Power the right choice for you?

You're in an excellent position to take advantage of Macquarie Trading Power if you:

  • Already own shares through your Macquarie Margin Loan and you want to earn additional income.
  • Want to sell shares you do not currently own to profit from a fall in their prices.
  • Want to use the equity in your portfolio to finance other options strategies.
  • Want to maximise your borrowing capacity.

What is Put Protection?

Put Protection enables you to purchase put options against shares that you hold in your Macquarie Margin Loan, allowing you to:

  • Lock in the sale price of your shares.
  • Protect your shares from a potential drop in price, mitigating the possibility of margin calls.
  • Borrow up to 100% of each shares' protected value.
  • Potentially offset the cost of the put option by the premium you earn writing Covered Calls over your Margin Loan.

How can you benefit from Covered Calls?

A Covered Call involves writing a call option against shares that you hold in your Macquarie Margin Loan, giving you the opportunity to:

  • Earn additional income from your shares, enhancing the return on your investments.
  • Use call option premiums to help meet your loan interest payments.
  • Offset some of the investment risk of holding shares with call option writing.

Why use Cash Cover?

Cash Cover enables you to sell or buy put and call options and use your Macquarie Margin Loan to meet any margin payments or settlement obligations, so you don't need to tie up your own cash or other assets.

Why make a Short Trade?

Short Trade enables you to sell shares (provided to you by Macquarie) so you can re-purchase them at a lower price, giving you the opportunity to:

  • Profit from a falling share price.
  • Continue to trade and profit from a 'bear' market.
  • Hedge the value of your shares with no cash outlay.
  • Pursue a 'long/short' or 'pairs trading' strategy.

Find out more

To learn more about Macquarie Trading Power features, please:

Ready to apply?

We recommend you obtain professional financial, legal and taxation advice before making any investment decision.

The Macquarie Margin Loan and Macquarie Trading Power are offered by Macquarie Bank Limited ABN 46 008 583 542, AFSL No. 237502 ("Macquarie"). Full terms and conditions are set out in the relevant loan contracts. Fees, charges and government taxes are payable.