Trading Margin

yeaaa asked:


Right now i have a normal money market account on E-Trade and i have to wait 3 days for my money to come back so I was thinking of getting a margin account. This is what it says for the rate “6.99% (3.00% above base rate)” Can someone explain this to me?
I usually buy about 20,000 worth of a stock at a time
And does the margin get repaid when the money from the last trade becomes settled?

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Ryan L asked:


On http://thinkorswim.com under the question of “what is the account minimum?”, the answer they give is:

For foreign exchange trading a fully funded thinkorswim margin account needs to be opened first. Once opened you can transfer a starting balance of $500 to the full amount of your margin account to your thinkorswimfx trading account.

What would be a fully funded margin account? I’m new to this as you may have guessed

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mrrmaid asked:


I have a margin-enabled trading account with fidelity. WIth each trade, I have the choice to purchase with cash, or margin. I made three cash trades a few days ago. It appears that since, Fidelity has “sold” each one and converted each position to margin. What the heck? Is this typical?
I called fidelity, but I still don’t understand at all. They said all positions in a margin account are automatically converted to margin. There is an option when you purchase to buy with “cash” or “margin,” but apparently this option is meaningless. There seems to be no way to hold a cash position in this margin account, if I understand, which is somewhat doubtful.

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Michael B asked:


Since there is the T+3 day rule. Lets say I have 5000 cash account. With Margin I can use up to 50 percent on Margin and 50 percent On cash account is that correct?

So every stock I buy I must cover at least 50 percent? Which means i can only trade 4 days outta 5 in a week

I can trade Monday 2500cash/2500 Margin ( 5k total), I can trade Tuesday (2500cash/2500 Margin). With the T+3 day rule, I usually get my money back by Thursday and Friday.

Which means I can’t trade on wednesday? Should I use a different approach? I want to invest the most capital on the following week.

trading margin

Stock Querer asked:


E.g.
If I buy 100 shares of company A at $1 (T) and sell 100 shares of company A at $1.1 two days later (T+2), do I need still need to pay for the shares I bought at settlement date (T+3)?

trading margin