Contra Trading

Rakuten Trade’s Contra account is a powerful tool that increases short-term trading limits, so you can take advantage of intraday price swings.

At first glance, Contra trading may seem intimidating and complicated. However, like any tool, knowing the right time and place to use it will help you seize opportunities.

A Contra Account lets you trade up to 5x more than your balance, with brokerage rates like a Cash Upfront Account. You have 2 days to settle transactions and earn 1.75% interest on available cash. It offers flexibility to trade now and pay later.

Here's a simulation of how Contra trading at Rakuten Trade works. Sign up and get access to brokerage free trades and waivers. 

A contra account gives you a higher trading limit so that you can buy more (shares) than what you have in your account (collateral). The higher the limit, the more shares you can buy. It's kind of like shopping with a credit card except in this case you BUY / SELL shares.