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If the cash balance of a margin account is negative, the amount is owed to the broker, and usually attracts interest. If the cash balance is positive, the money is available to the account holder to reinvest, or may be withdrawn by the holder or left in the account and may earn interest.
Special memorandum account (SMA) [1] is a margin credit account used for calculating US Regulation T requirements on brokerage accounts. In addition to Initial Margin and Maintenance Margin requirements, the SMA ledger is used to lock in unrealized gains that augment the client's buying power.
If short shares continue to rise in price, and the holder does not have sufficient funds in the cash account to cover the position, the holder begins to borrow on margin for this purpose, thereby accruing margin interest charges. These are computed and charged just as for any other margin debit.
Investors can potentially lose money faster with margin loans than when investing with cash. This is why margin investing is usually ... a margin loan of $10,000 at 5 percent interest would ...
If you want access to the best stocks in the market, then having a brokerage account is an absolute must. But compared to opening a bank account, the process for setting up a brokerage account can ...
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Vigorish (also known as juice, under-juice, the cut, the take, the margin, the house edge or the vig) is the fee charged by a bookmaker for accepting a gambler's wager. In American English , it can also refer to the interest owed a loanshark in consideration for credit.
Many brokers still charge ridiculously high margin rates of 8% or more on relatively small loan balances. But if you shop around, you can find some discount brokers that currently charge less than ...