If you have 25,000 in your account it says that you can leverage it by 4:1 so you actually have 100,000 daytrading buying power. Do you get charged interest on the 75,000 thats not in your account?
2007-08-05 14:44:38 · 2 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
no but if you use it you have to come up with the difference in what the market is worth and what you invested -- other words if the market goes down say 15K and your stocks ar now only worth 85k you have to come up with 15k very risky business -- too nerve racking for me.
2007-08-09 08:02:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't really know much about day trading, but isn't there something about margin calls? Could that $25K be considered the margin for that $100K?
If they do a margin call, you have to come up with all the money immediately.
Also, you shouldn't gamble with money you don't have and can't afford to lose.
2007-08-05 21:54:02 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋