Is margin interest applied to intraday trades?
Is margin interest applied to intraday trades?
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Lightsout · External communityPost link
External question — Personal Finance Stack Exchange
Author: Lightsout
Original post: https://money.stackexchange.com/questions/125914
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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I'm trying to understand how the margin interest charge is calculated when you borrow money from a broker like Fidelity to buy stocks for intraday trades.
If the rate is 8% then is the daily charge should be 8% / 365 or 0.0219% of how much you borrowed? Or if you buy and then sell the stock on the same day then the broker does not charge you any interest?
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Lightsout Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/125914 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm trying to understand how the margin interest charge is calculated when you borrow money from a broker like Fidelity to buy stocks for intraday trades. If the rate is 8% then is the daily charge should be 8% / 365 or 0.0219% of how much you borrowed? Or if you buy and then sell the stock on the same day then the broker does not charge you any interest?
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