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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Why is there a financing fee for holding a CFD overnight?
I read in lots of places that you pay an overnight financing/margin fee for CFDs, making them not suitable for long term holding - as the overnight fees add up. What I don't understand is, what is the ...
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Can (did already) the GME-related hedge funds cover the $5 billion?
Yet another GME question I'm afraid. Straightforward...
The GME-related hedge fund(s?) in question lost about $5 billion.
Thus, they have to send a cheque for $5 billion† to their broker(s), and/or ...
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Margin call/maintenance question
I am now facing a margin call, and I have a question,
Bought a stock at $x on %50 margin maintenance
After Jan 28, the stock dropped, and my margin maintenance increased to 100%
It says I need to ...
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What is the actual reason the short sellers of GME can't just hold their positions until the price goes back to normal?
Thinking about the current situation where GME has been shorted by more than the existing float, I think I have a basic understanding of short selling as selling shares you've borrowed. I've seen a ...
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Why is maintenance margin at 50% if initial margin is at 100%?
Let's say I open an account with a broker (plus500.com), to invest on margin.
I want to open a position (in that case £100 on CDR:WSE) without leverage. It asks me an initial margin of 100%, meaning I ...
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IBKR charges different interest rates on margin loans denominated in different currencies. Why not take out the loan in the cheapest one?
For example, the top interest rate for margin loans as of today in AUD is currently set to 1.5%, while for ZAR the interest rate is set to 8.057%. That is a huge difference. If I were in South Africa, ...
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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 ...
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In a trading account what is the difference between margin and collateral?
What does it mean when someone says a trade requires 10%, 100% or 150% margin?
What kind of calculations are required when you talk about margin and collateral?
What is a margin call and when does it ...
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How do futures affect my maintenance margin requirements in my margin?
Hypothetical Background: I have an Reg T margin account with Interactive brokers. I have a maintenance margin requirement of ~30% for that; I have calculated the drawdown necessary to get a margin ...
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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? ...
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Is there any way to use margin in your account without incurring interest charges?
Is there any way to use margin without incurring interest charges?, say I purchase 200 shares of stock with 2000$ of margin on the 11th day of the month, I then sell the 200 shares on the 12th day of ...
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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 ...
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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 ...
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How is Current Maintenance Margin calculated by Interactive Brokers?
I am curious about how Interactive Brokers calculates Current Maintenance Margin and Current Initial Margin. Why do both have the same value?
I have an all-stock account.
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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 ...
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