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Showing results for tags 'margin'.
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Hello, I have been day trading for under a year... I use Interactive Brokers but I usually only get to trade one or two days during each week because Once I use my cash, I cannot use it again until it clears which takes 3 or 4 days. I do not use margin, but I've been reading about it. I'm assuming that if I signup as a margin account, I will then be able to double the money I have to use for trades? (1) Lets say I have $30,000 cash account. If I signup for a margin account, will I then be able to trade with $60,000? Thus allowing me to trade more than one or two days per week? (2) If I close all positions before the end of each day, do I still have to pay interests on the margin money? (I ask because I read an article that seemed to say that). (3) Do any of you use a margin account, and if so, do you feel like sharing any pros and cons? basically I feel like I'm doing pretty good with my trades overall, but just not making a lot of money because I enter and exit pretty quickly with low amounts of shares (100 - 300). If I had more, I could jump back in at the next reversal or just in general trade on more days than just one or two. Well thanks for any advice and I look forward to being a member of this forum. I just foudn it today and I have spent hours reading through it already! lol. Im about to go eat finally. LOL
A Liquidation Level is put in place as a protective measure that will prevent traders from losing their entire account value if their trades work unfavorably. If a trader wishes to prevent liquidation from occurring, the trader must add margin to the trading account in order to prevent all trades from closing.