Do we earn interest on balance from stock short sale at Scottrade?

Question

For example, I have $10K balance, and bought $14K stock A and sold short $4K stock B. So the cash balance goes to 0.

Do I need to pay interest in this case?

Answer 1

Yes sir. You actually pay interest twice, on the $4000 that you are long over your $10,000 cash balance and on the $4000 that you are short

I think you can also receive interest for the $4000 proceeds of the short sale but if you are on margin at 8% and receive interest at 2% you are losing money

Answer 2

Yes but make sure the investment is marginable and remember that any loss of value of the investments may result in a margin call. That's why T-Bills are popular for such investments as there is no possibility of a loss, the gains are pathetic but they are better than nothing, the important thing is to not increase your risk.