Yes, a margin account is required to use Plutus. To ensure our automation functions correctly and your holdings remain aligned, your linked brokerage account must have margin capabilities enabled.
Why is margin required?
Continuous Rebalancing: Cash accounts are subject to settlement periods (the time it takes for funds to clear after a sale). These delays can interrupt our automation, preventing the system from reinvesting your capital immediately.
Global Market Access: Many portfolios and baskets invest in international markets. Since global stock exchanges operate in different time zones, margin allows the system to open and close positions seamlessly without waiting for overlapping market hours or currency settlements.
Order Execution: Margin provides the flexibility needed to execute complex rebalancing trades across multiple positions simultaneously.
How do I enable margin?
If your current account is a cash account, you can typically upgrade it through your brokerage portal:
Update your Financial Profile: Most brokers require a complete financial profile to assess your eligibility for margin.
Submit an Approval Request: Navigate to your account settings within your brokerage portal and request to enable margin.
Wait for Broker Approval: Your broker will review the request based on their specific regulatory and internal requirements.
Plutus cannot support accounts that do not have margin enabled