All Questions
Tagged with margin united-states
14
questions
3
votes
2
answers
254
views
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 ...
- 359
1
vote
1
answer
360
views
Is there a rule of thumb for 'safe' margin percentage?
I have read rules of the thumb on [sources] that may say things like "don't put more than 20% of your holdings into one stock", etc etc... Is there a similar safe-side rule of thumb for ...
- 2,898
0
votes
1
answer
206
views
Portfolio margin account overnight leverage
I know for a regular margin account, the requirements of Regulation T generally limit leverage on equity to 2:1, which means SMA has to be positive for overnight.
How about a portfolio margin account? ...
- 341
0
votes
1
answer
60
views
Do dividends from securities held on margin lose their tax advantage?
If a security pays a dividend, depending on the holding period of said security, the dividend might be considered "qualified" and taxed at a lower rate. What if the security is held with ...
user19035
3
votes
1
answer
474
views
Your account is approved for margin. Maintenance requirement questions?
I am new to investing and opened a brokerage account through TD Ameritrade.
I've been purchasing stock with cash deposited into the account.
I noticed today the Maintenance requirement row in the ...
- 145
2
votes
1
answer
828
views
Pattern day trading, margin, and day trade buying power
I have some questions regarding the rules surrounding pattern day trading, margin, and day trade buying power and how they interact with each other. Assume to following scenario:
The account is a ...
- 23
3
votes
2
answers
3k
views
Why are some money market mutual funds not margin-able for 30 days?
My broker has a money market mutual fund where I can park the money when not invested, but that position does not give margin buying power for next 30 days.
Per article part shown below.
Example of ...
- 3,492
1
vote
1
answer
115
views
Selling Lots and SMA (Special Memorandum Account)
My broker allows me to sell shares in the lots that they were bought.
For example, the fictitious NuCo, In., in order of purchase:
Lot A: 300 Shares of NUCO at $20
Lot B: 300 Shares of NUCO at $17
...
- 299
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. ...
3
votes
3
answers
4k
views
Why is a margin account required for limited risk spreads?
If I try enter a limit order for an options spread I am denied being able to make this trade due to not having a margin account. Why? I'm not borrowing any money to make the trade, it's all in cash. ...
user12515
6
votes
2
answers
990
views
Is it bad to consolidate and pay off private student loans with margin from my brokerage account?
I have several private student loans that aren't eligible for debt forgiveness and with interest rates between 10-15%, for a total of about $30K. I think it would be easier to pay the loan down over ...
- 69
0
votes
1
answer
305
views
Regulation T and Initial Margin Requirements: How to interpret the 50%?
I wanted to understand initial margin requirements in the Federal Reserve's Regulation T section of the code. I read an article in Investopedia on Regulation T requirements, but I still feel uneasy ...
- 301
4
votes
2
answers
540
views
Rules for Broker Behavior with Covered Calls
When selling covered calls, there are a couple of things a broker could do if the stock has a sharp increase. Here's an example:
Buy Stock: $100
Sell Call $120@1month: $1
Two days later, the stock ...
- 829