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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Should I invest on margin?
I have an Interactive Brokers margin account, but so far, I haven't been using the margin; I'm considering doing so.
According to https://www.interactivebrokers.com/en/index.php?f=18069, their ...
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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?
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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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Zero cash buying power, what would margin maintenance be?
I have $0 cash buying power but have loads of margin buying power because of my current marginable securities. If I make a margin trade for any amount does that mean I have 0% equity in that position ...
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My account's been labeled as "day trader" and I got a big margin call. What should I do? What trades can I place in the blocked period?
HI I recently received a day trading margin call of $14,852.63 requirement. I do not have that much money. What should I do? Should I close my trades and take all cash out? The system labeled me as ...
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Investing using leverage
As a trader, I understand the premise of Leverage and Margined accounts.
I understand that it is almost necessary to use leverage in order to make money from trading.
But the question is about ...
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Sold a bullish vertical credit spread and was assigned early. Need information about a margin charge
Recently I was assigned on a short deep in-the-money put. It created a huge margin call. I called the broker the following day to exercise my long put to flatten out the position. He did that ...
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Short-selling treasuries instead of borrowing on margin?
Let's say I have a diversified investment portfolio, and I wish to tap a relatively small amount of cash (less than 5% of the portfolio's value) without liquidating any of my positions.
I could ...
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When do I need to pay interest on my short sell position?
For example, if I deposited $3000 into the account, and I short sell $3000 worth of VXX(a non-dividend paying etf). Do I need to pay any interest on my short sell position in this case?
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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 ...
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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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Do I have to pay interest on a margin short sale if I post full cash collateral?
Let's say that I have $100 in my account and I want to short sell stock A. Stock A is valued at $100, so therefore I sell one share of stock A.
In order to do this, the account is a margin account. ...
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