Is there any way to use margin in your account without incurring interest charges?
Is there any way to use margin in your account without incurring interest charges?
Loading saved threads...
Kyle · External communityPost link
External question — Personal Finance Stack Exchange
Author: Kyle
Original post: https://money.stackexchange.com/questions/132767
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
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 the month and repay the margin, since margin interest doesn’t incur until the trades settle and I sold the stock and repaid the margin before the trade has settled will I still be charged interest on the 2000$ of borrowed margin?
Quote
Report
Bob Baerker · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Bob Baerker
Original post: https://money.stackexchange.com/a/132768
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
...since margin interest doesn’t incur until the trades settle
That isn't correct. Margin accrues daily.
If you buy the stock on the 11th and sell it on the 12th, you pay one day of interest on your borrowing.
Some people sell box spreads (options) for a credit to generate cash but that's another story.
Quote
Report
Aganju · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Aganju
Original post: https://money.stackexchange.com/a/132773
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Yes, but only if you are (intra-)day-trading.
Your transactions might settle on T+1 or T+2 (depending on what you trade), but if you buy and sell on different days, they obviously settle on different days too.
You can also look into short sales and option spreads, where you generate extra cash before you use it - that cash is interest-free, but of course comes with other risks.
Quote
Report
Post Reply
Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Kyle Source score (net votes, not local likes): 0 Original post: https://money.stackexchange.com/questions/132767 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. 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 the month and repay the margin, since margin interest doesn’t incur until the trades settle and I sold the stock and repaid the margin before the trade has settled will I still be charged interest on the 2000$ of borrowed margin?
Checking account access…