Does a high score mean the trade will work out?

No. This checklist scores your decision process for using margin, not the outcome of the trade itself. Margin changes how much a loss costs you, not whether the trade wins or loses.

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Should I use margin for this trade, or wait until I have cash?

Q: Should I use margin for this trade, or wait until I have cash?

Check off which of 8 statements are true for this specific trade, covering your reasoning, the interest cost, your risk rule, and your repayment plan. A score of 7 to 8 reads as Go, 4 to 6 as Wait, and 0 to 3 as No-Go, wait for cash.

Most traders blow up chasing the setup they missed, not the one in front of them.

Jason Parker, Founder of Trading Habits

Check What's True For This Trade

Check every statement that's true for this specific trade, right now, before you borrow to place it.

I have a specific, calculated reason I need margin for this trade, not just "more buying power."
I know my broker's exact margin interest rate and I've calculated what holding this position will cost me.
This trade still fits my max risk-per-trade rule even after including the borrowed portion.
I have a clear plan for how and when I'll pay back the borrowed amount.
I've calculated the stock price that would trigger a margin call on this position.
I could cover a margin call in cash without being forced to sell at a bad price.
I'm not using margin to make up for a string of recent losses.
I'd still be comfortable holding this on margin overnight if the price moved sharply against me before I could react.

Your Result

Check the statements that apply and click Check My Trade to see if margin makes sense here.

How this is calculated

Each checked box adds one point toward margin readiness, out of 8 possible points.
A score of 7 to 8 reads as Go: your reasoning, math, and exit plan for using margin on this trade are in place.
A score of 4 to 6 reads as Wait, Missing Steps: identify the unchecked items, usually the interest cost, the margin-call price, or a repayment plan, and fill that in before borrowing.
A score of 0 to 3 reads as No-Go, Wait for Cash: several core pieces are missing, and borrowing to take this trade is not ready as it stands.
This is a self-check on your own decision process, not a prediction of whether the trade wins or loses. Margin changes what a loss costs you, not whether you'll have one.

Risk & liability disclaimer: This tool is an educational self-check checklist only. It is not financial, investment, or tax advice, and it does not predict whether any specific trade will win or lose. Margin trading involves additional risk, including the potential to lose more than your initial deposit and forced liquidation by your broker. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Always verify results independently and consult a licensed professional before making any trading or financial decision.

Should I use margin for this trade, or wait until I have cash?

Check What's True For This Trade

Your Result

How this is calculated

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