Contra Trading 101: How It Works and What Investors Should Know

Learn how contra trading works, what key terms investors should understand, and the risks to consider before using a contra account. Explore Rakuten Trade’s contra features, top traded counters and how to get started.

Trade Beyond Limits: The Power of Contra

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 0.75% interest on available cash. It offers flexibility to trade now and pay later.

Contra Trading Simulated

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

A Rakuten Trade Contra Account

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.