Hi all, so I have been day trading for about 7 months on TOS and have been doing alright and I had a question with day trading and using margin. I have been thinking of day trading Tesla on margin (1:4 on Tos) and let’s say if I have $100,000 in my account and I want to take a big position on Tesla with $400,000 as a day trade, how much would I be charged at the end of the month if I day trade like this? Btw I haven’t done this because no way I would put 100% of my portfolio in one stock but I was curious what the catch would be if this was done?
I have been day trading for some time in a cash account and I have been considering applying to upgrade to a margin account. I’ve been googling for the last few hours trying to find an answer to a specific margin question with a frustrating lack of resolution. Bear with me. Let me first start by saying that I know what margin is and I fully understand the PDT rule. The answer that I am looking for is not an explanation of what they mean (which is all I got from google). I am trying to understand the effect of my buying power after having already completed a day trade. I read somewhere that margin can cover all of my trade if, of course, I choose to use only margin and if I have the margin buying power to do so. I’m not sure if this is true and if it isn’t true, please someone let me know, but if it is true what is my buying power after my following example... Hector is an active trader and he has an account with $25k cash and a 4:1 margin. So obviously $100k buying power. Hector buys 25 shares of ABC at $1,000 per share totaling $25,000 and he chooses to fund 100% of this purchase with margin. 30 minutes later he sells his position for $1,100 per share. A profit of $2,500. Later that day he spots another trade opportunity. What is his buying power for that second trade? Is it $75k because he already used $25k of his initial $100k buying power? Or is it still $100k because he didn’t use any of his actual cash to fund the original trade? I’m sorry if this is a stupid question or asked in a very drawn out way but there seems to be no easy way to ask this.
Day trading on Margin Account. Any potential issues in the longer run with the tax dept?
Hi, Sorry if this is a noob question but I read all possible resources online/personal finance sites but could not get a satisfactory answer. I have been doing some day trading on my margin account for over a year now. Not every day but few trades in a week or sometimes even just a few trades in a month. I have made some nominal profits. I reported capital gains in my returns (took the help of a CPA in calculating the ACB value and calculation of taxes on capital gains). It was nominal. My question is if I continue to do day trading and maybe increase the frequency of trades, can it create issues for me in the future with the tax dept? I will make sure to report all capital gains correctly. Will a large number of trades attract any undue attention. I trade a few thousand in day trading ~15k CAD at a time. Can the CRA raise any objection seeing the volume of day trading? I believe mine is still very small to more experienced traders/professional. But just wanted to make sure that these small gains do not unnecessarily result in issues in the longer run. And yes. I do not day trade on TFSA/RRSP accounts. Only the margin account. I would be very grateful if the more experienced folks on this amazing subreddit share their opinion/advice! Thanks a ton!
Day trading on margin. How does it work??? I have been day trading for some time in a cash account and I have been considering applying to upgrade to a margin account. I’ve been googling for the last few hours trying to find an answer to a specific margin question with a frustrating lack of resolution. Bear with me. Let me first start by saying that I know what margin is and I fully understand the PDT rule. The answer that I am looking for is not an explanation of what they mean (which is all I got from google). I am trying to understand the effect of my buying power after having already completed a day trade. I read somewhere that margin can cover all of my trade if, of course, I choose to use only margin and if I have the margin buying power to do so. I’m not sure if this is true and if it isn’t true, please someone let me know, but if it is true what is my buying power after my following example... Hector is an active trader and he has an account with $25k cash and a 4:1 margin. So obviously $100k buying power. Hector buys 25 shares of ABC at $1,000 per share totaling $25,000 and he chooses to fund 100% of this purchase with margin. 30 minutes later he sells his position for $1,100 per share. A profit of $2,500. Later that day he spots another trade opportunity. What is his buying power for that second trade? Is it $75k because he already used $25k of his initial $100k buying power? Or is it still $100k because he didn’t use any of his actual cash to fund the original trade? I’m sorry if this is a stupid question or asked in a very drawn out way but there seems to be no easy way to ask this.
Hello everyone, I was thinking of converting my >25k account from cash to margin and am wondering about something. If I make a trade using margin, and sell on the same day, do you pay interest on that margin? Or does it simply repay the borrowed amount? Thanks for any help.
Hey guys, i called TD on Thursday to request that my account be converted to a cash account since I noticed margin was enabled. I have been using my own money anyways and i know there are rules regarding day trading on margin. I do want to start day trading today, and want to make sure I won’t get in trouble for it. This change is probably pending on my account, but will I be able to day trade without being suspended for it?
So according to customer service, when trading options or option spreads, each contract will count against your day trade limit. I ran into an issue where I opened up an IC and then sold the call side. It counted as two day trades. The rep said it's by contract and not by complex position. Can anyone else confirm their experience with this? I have used other brokers that count the entire position regardless of the number of contracts as 1 day trade when opened and closed.
The 25k minimum account balance is to protect the brokerage against your risky day trades right? But that should only apply if you day trade on margin right? Otherwise if you just use cash how are they taking any risk? Edit: ok thread's over it's because I'm poor and use Robinhood got it.
Hey there, hope all is well. Sorry if this is a repeated question, I couldn’t find it anywhere. If I buy shares during regular market hours, then sell during premarket the next day, does that consume one of the 3 day trades on margin? Thanks
Cash account help! So on TD I applied to change my account to cash only so on TOS I can make unlimited day options trades with settled funds... why does it say standard cash but margin enabled? Does it still need time to apply?
I posted a picture on here last night asking to verify if I had a cash or margin account. If I have a cash account, then why does it say that I only have 3 day trades left on the Thinkorswim app? Thank you
Upcoming 7-Day Margin Trading Promotional Event on BitMax.io to Celebrate Christmas and New Year
Dear BitMax.io Users, In celebration of Christmas and New Year, BitMax.io will launch a 7-Day Margin Trading Promotional Event to share One BTC reward. The event runs from 7:00 p.m. EST, Dec 24th, 2019 to 7:00 p.m. EST, Dec 31st, 2019. Terms & Conditions: 1. Registration is NOT required for participation. 2. During the event, only those users with daily margin trading volume ≥ 2,000 USDT will be eligible to receive One-Point Card reward each day. 3. During the event, users with daily margin trading volume ≥ 2,000 USDT for 7 consecutive days will be eligible to share One BTC reward proportionally based upon the 7-day trading volume from all eligible users. 4. The reward will be posted to the account within 7 business days after the event. Note:
During the 7-day period, users who fail to meet the daily trading volume of 2,000 USDT on any given day will not be eligible for BTC reward.
It is counted as ONE day from UTC 0:00 to UTC 24:00 (7:00 p.m. EST to 7:00 p.m. EST the next day).
BitMax.io reserves the final right on the interpretation and adjustment of these Terms and Conditions. For any abusing activities, the users will be disqualified from the event once identified. Thank you for the continued support. BitMax.io Team Dec 24th, 2019 Telegram Group: https://t.me/BitMaxioEnglishOfficial
Looking for honest trading/broker/chart app reviews and recommendations
Hello all, new here, new to the idea of day trading. I've been investing in the market since 2008 and overall done very well. I got hooked in my high school C&E class and actually had to invest with play money as part of a project. Well, I invested real money too and just never stopped. However, recent market volatility has me teasing the idea of day trading on a separate account as well. I decided to try RH and have really enjoyed the layout. However, I'm wondering after all the recent trouble if there are better options. As stated above, I'm not a stranger to the market, I know how to buy and sell, I know how to exercise trade options and previously have shorted stocks and made gains, the only difference is that I'm looking to do it on a shorter timeline. Just to make sure I don't run myself broke or affect one of my retirement accounts, this account is going to be low volume ~$1000-3000 to start. As stated I'm currently using RH but as a test platform and only using about $100 to play with. I'm also using Atom, but really disappointed with how far behind it is. Currently it's showing about a 15% difference with the accounts I have linked. However the information is somewhat worth the bugginess so far. I keep getting tons of suggestions. Webull, td am, fidelity, even someone telling me E-Trade is still relevant in this day and age. Oh as an addendum, I'm not trying to day trade on margin yet. One of the reasons I like RH cash account. However, I would like to use trade options/shorting, without a margin account, IF that's even possible (I can understand how it wouldn't be). Overall big thing is that this is just a test portfolio, just to see how I do and if I can do it effectively enough to make it a healthy supplement to my current salary, and less of a long term retirement idea. If it's not feasible, it's not feasible.
Binance announces new VIP structure for margin trading, enabling certain users to gain up to 10x the standard borrowable amount, as well as up to a 20% discount on daily interest rates. The eligibility of users will be \determined by 30-day BTC trade volume
Newbie here, been "day trading" (sort of) on Robinhood for the past few weeks. Ran into the issue of being marked as PDT and blocked from selling certain stocks I had recently purchased. Considering: -I am starting with a small account balance of $1.5-2k -I am trying to save as much in fees as possible to keep my daily percentage gains high (reason why I decided on IB as my new broker) -I would like to have account deposits/withdrawals go thru as quickly as possible (preferably the same day I deposit) -(Not as important as the above requirements) Would like to have the option of trading options (pun intended) It would be better to go with a cash account right? Or are there benefits to day trading with a small balance margin account that I'm not seeing? Thanks in advance for the advice!
Question regarding tax on day trading in my margins account
Using a throwaway account as I don't want any financial information linked to my main account. I started day trading last year, but due to the increased volatility this year, I have been able to make a good return. My question is regarding my tax bill. I am making 55000 a year for my day job. Would my day trading profit count as simple capital gain tax or a business tax that I have read somewhere here? Is there anyway to mitigate the amount of the taxes I am about to pay? Cheers.
Mistakenly used my last day trade while on heavy margin
So I bought 13k worth of stocks and i have $4500 cash and $1500 coming in. I dont want to break the pdt rule and holding 13k overnight is risky. Is there a way out for me that I'm not seeing because at the moment I believe hold 13k overnight in the stock is my way out.
Investopedia ranks the best online stock brokers for day trading. These trading platforms allow the trader to monitor price, volatility, liquidity, trading volume, and breaking news. Day trading on margin – using borrowed money to leverage one’s trading results – is a speculative practice that can be dangerous. Margin trading is not for novice traders, who have yet to establish effective strategies and risk management practices. The day-trading margin rules address this risk by imposing a margin requirement for day trading that is calculated based on a day trader's largest open position (in dollars) during the day, rather than on his or her open positions at the end of the day. Margin requirements and day trade buying power calculations (2:05). As this example demonstrates, day trading requires an in-depth knowledge of margin requirements, as well as a solid understanding of day trading strategies. Therefore, be sure to do your homework before you embark upon any day trading program. Day trading on margin is a risky exercise and should not be tried by novices. People who have experience in day trading also need to be careful when using margin for the same. Using margin gives
Trading 101: What is a Margin Account? Come join me for a live session where I talk more about trading, the markets and all the money that can be made. Claim... Margin Account vs. Cash Account - Options Trading For Beginners - How To Trade Options - Duration: 6:00. Option Alpha 77,289 views Hi Welcome to the Top Trade team. This video describes the process of buying and selling in cash margin. We can sell shares even if we don't have them! With ... FREE eBook: "How to Day Trade" Download Now: http://webinar.warriortrading.com/signup In this video, presented by Lightspeed Trading I go over the two basi... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de...