All Questions
13
questions
0
votes
0
answers
42
views
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 ...
- 65
0
votes
1
answer
317
views
How Do I Trade With Margin On E*Trade?
I'm new to Margin altogether and need some help. Here are my numbers:
Total Margin Requirements $0.00
Total Margin Equity $190.68
Adjusted SMA $205.34
Maintenance Excess ...
1
vote
2
answers
300
views
Is there an exact percentage drop for a stock for it to trigger a margin call?
I think in US stock market, it is common to be able to borrow 100% and buy the stock, and the margin requirement is 30%. (some firms call it "Margin Maintenance Requirement" or "MMR&...
- 1,593
4
votes
1
answer
2k
views
How does voting work when shares are lent out to short sellers?
At a stock brokerage firm, A has 1000 shares of a stock in a margin account, while B has 500 shares. The stock brokerage firm holds all these shares in street name and can lend these shares to short ...
- 17.1k
2
votes
1
answer
272
views
What are the situations that could cause unlimited liability in my stock brokerage account?
I have a stock brokerage account, and I want to make sure that the things I do in it will not cause me to be liable for more than the amount I put into the brokerage account. My question is: under ...
- 17.1k
0
votes
2
answers
1k
views
Do I earn interest when shorting stocks?
Suppose I short 100 shares of a $5 stock. My cash balance will be +$500 due to the short position. Does this $500 earn any interest?
I have heard two opposing answers:
The $500 earns interest, and I ...
- 17.1k
-1
votes
2
answers
191
views
Is my FX brokerage manipulating my profit margin to pay out less?
USDCAD pair has moved 41.90 pips in my favour @ 0.01 lots (broker showing profit of $3.01)
USDJPY pair has moved 52.30 pips against me @ 0.01 lots (broker showing loss of -$4.85)
At $0.10 per pip (0....
- 1
1
vote
1
answer
565
views
what Is the relation between margins, brokers, and clearing members?
What is the difference between clearing margin and margin maintenance?
I know that an investor in a futures contract is required to keep a maintenance margin with the broker. The broker will require ...
- 55
3
votes
1
answer
777
views
Securities lending program vs a Margin Account
Suppose I have a brokerage account and I am long on a stocks very heavily and there are short sellers who need this stocks from my broker. There are two ways a stock broker can lend securities held ...
- 3,492
6
votes
3
answers
578
views
Why are margin maintenance requirements based on total account value and not just the margin debt?
Just reading through Charles Schwab's margin brochure and saw this section...
The securities used as collateral must maintain a minimum value relative to the account’s
margin debit balance. ...
0
votes
2
answers
524
views
What is "Stock BP" in a brokerage account that's not trading on margin?
I saw that this question was answered on reddit here as well as a similar question was answered on this S.X here.
But I wanted to confirm the meaning of a "Stock BP" amount if I'm not trading on ...
- 610
1
vote
1
answer
3k
views
How many naked option contracts can I write if I want to use maximum margin
Let us say I want to write a naked option on SPX in my interactive brokers margin account. If this is the only position I wish to hold in my account, and I want to use maximum margin, then what is the ...
- 16k
8
votes
4
answers
510
views
Other than being able to borrow to invest, how is a margin trading account different from a cash account?
Other than being able to borrow against one's portfolio value to purchase additional investments, how is a typical brokerage margin trading account different from a typical cash trading account?
...
- 31.7k