Questions tagged [margin]
A margin account is an account offered by brokerages that allows investors to borrow money to buy securities. An investor might put down 50% of the value of a purchase and borrow the rest from the broker. The broker charges the investor interest for the right to borrow money and uses the securities as collateral.
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What margin requirement should I pay for the option positions?
I want to establish the following positions:
Long 50 ABC jan 820 Calls @3
Long 50 ABC jan 675 Puts @4
What margin requirement should I pay for the option positions?
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How does Binance allocate Margin to Cross mode position?
I'm trying to get my head around the values shown in Binance's Futures position, and how they're related to one another. I'm puzzled about the Margin column in the Positions view.
It appears as if the ...
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Is withdrawing cash from a broker in margin in Europe prohibited?
Since about 2 years its impossible to simply withdraw cash from interactivebrokers in Europe on margin. You can buy more stock on margin, but you can't withdraw cash.
Is this something regulatory ...
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IRA in a margin account
I understand that an IRA can't be held in a margin account, or at least margin can't be used. What I didn't know until recently is that the IRS can declare the entire account distributed if it's in a ...
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Isolated Margin
This question about leverage mentions "Isolated Margin".
A bit of googling leads me to think it is some crypto idea. The explanations I can find just states that the risk can be limited to ...
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Can margin interest be added to a debit balance beyond 50% equity?
I carry a margin balance and I am always trying to plan ahead for the worst-case scenarios…
If I get below 50% equity in my mutual fund brokerage account because of market fluctuation and a margin ...
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Can you withdraw capital gains from a stock sale and still deduct interest on the original cost basis?
Say you borrow 50k and buy 100k of shares.
Then the stock rises to 100k
You sell half and cancel out the loan, but also have 50k of capital gains.
If you withdraw the 50k gain to maintain the original ...
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Calculating Canadian Capital Gain or Loss After Loan and Investment
Consider the following hypothetical scenario involving trading with margin in Canada w/ made-up exchange rates:
I take out a $100,000 USD loan on Jan/01 - ($150,000 CAD)
I lose all of it immediately ...
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Do you pay interest on trading with unsettled funds in a margin account?
If you buy/sell a stock with 100% of your account (not on margin, but with a margin account) will it just be settled immediately, or do you need to be on margin and pay interest to be able to trade ...
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Margin calculation on short and long positions combined
Assume an investor goes long on X1 and simultaneously short on X2 both of which cost $1. With margin rate at 50% he is required to deposit 0.5 + 0.5 = $1 margin to make the transaction. My question ...
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What's the relation between free margin and drawdown? (and leverage)
I'm trying to understand whether different leverages can affect the drawdown in forex/CFD trading.
I have noticed that given the same lot size, the bigger the account leverage, then the bigger is the ...
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Will broker release some of the margin to cash account if the market go in my favor?
Say the broker requires a init margin of 40%, and a maintenance margin of 30%.
If I buy 10000 USD worth of stock, depositing a margin of 10000 * 40% = 4000 USD. How do I calculate the required margin ...
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Net Liquidity vs. Maintenance Margin margin call approximation
I have been trying to understand margin calls properly, but since my margin was always insignificant I never really did. Now that my stocks dropped significantly I feel like I may be close to a margin ...
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Mathematically precise explanation of buying power
Can someone please provide a mathematically precise description of how buying power works in a brokerage account? Everything I can find online is too dumbed down to be precise enough that you could ...
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Can I buy index funds without margin and own it like a stock?
I am a total newbie so this might be a silly question but I am trying to buy S&P 500 and own it like a stock.
The problem is that my broker (XTB) only has the option to buy it with margin and ...
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